Y Combinator is a startup accelerator that teaches founders how to deal with investors. Founder Paul Graham says the experience gives them knowledge they can use in their own startups. The fund has an average of 67% equity, which means it's worth about $2 million per company.
Paul Graham, essayist, programmer and partner in the y-combinator talks with EconTalk host Russ Roberts about start-ups, innovation, and creativity. Graham draws on his experience as entrepreneur and investor to discuss the current state of the start-up world and how that world has changed due to improved technology that makes it easier to start a software company. Graham talks about his unusual venture firm, the y-combinator, and how he and his partners work with start-ups to get them ready for more advanced funding. Along the way, Graham discusses why hackers are like painters and how to survive high school.