Y Combinator Startup Podcast Startup Business Models and Pricing with Aaron Epstein | Startup School
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Dec 27, 2022 
In this discussion, Aaron Epstein, a Group Partner at Y Combinator, shares pivotal insights on startup business models and pricing strategies. He delves into nine diverse business models, drawing lessons from successful YC companies. The conversation highlights the importance of understanding customer willingness to pay and the impact of pricing on perceived value. Aaron also recounts a startup's transformative journey in adjusting its pricing strategy, which led to substantial growth and a lucrative acquisition.
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Importance of Proven Business Models
- Founders often get frustrated when investors won't fund them, and their businesses won't grow.
- This is often due to not using a proven business model.
Nine Business Models of Billion-Dollar Companies
- Don't reinvent the wheel; copy a proven business model.
- Study the nine models of billion-dollar companies: SaaS, transactional, marketplaces, hard tech, usage-based, enterprise, advertising, e-commerce, and bio.
Top Business Models in YC Top 100
- SaaS, transactional, and marketplace models make up 67% of the top 100 YC companies.
- Advertising and e-commerce barely register on this list.