Title: Y Combinator – A unique platform for entrepreneurship in Silicon Valley
Keywords: Entrepreneurial, Entrepreneurship, Startup, Network, Legitimacy, Silicon Valley, Y Combinator
Background: Silicon Valley has a unique culture of innovation and is regarded by many as the world's foremost center for entrepreneurship. A few companies, or so-called startups, write success stories. However, are there any shortcuts on the way to success as an entrepreneur in Silicon Valley? How important is a personal network? How important is a financial investment? Why is a large network along with good advices important? In what way is a good reputation - a legitimacy - important for startups? This thesis attempts to discuss these questions through a relation to the firm Y Combinator, which seems to be a unique platform for startups in Silicon Valley. Y Combinator is probably best described as a "start-up school" with advice, networking and financial assistance as important factors.
Objective: This study attempts to describe and define Y Combinator, from a startup’s point of view, in order to demonstrate a new way of thinking and acting on the market. The study also intends to highlight the importance and influence Y Combinator has and has had for startups in Silicon Valley. Furthermore, the study intends to highlight particular factors in the important initial phase of a startup in Silicon Valley.
Approach: The selected approach of this thesis is a qualitative method including five interviews carried out in Silicon Valley in the winter of 2008, with the focus put on the storytelling. The five respondents are all entrepreneurs in Silicon Valley and they have all participated with their startups in the context of Y Combinator.
Results and conclusions: The results regarding the initial phase of a startup are based on the respondents' answers, which indicate three characterizing factors which the startups consider most important. The first is that the original idea often is exposed to a lot of change. The second factor focuses on the product, where creating revenues is not a priority. The third factor is the risk taking, where entrepreneurs in Silicon Valley do not necessarily see risk taking as something particularly worrisome. When dealing with Y Combinator as a company the study has found four main factors that are clearly prominent from the respondents' answers. These factors are; Y Combinators enthusiasm and way of giving advice, access to a superior network, the monetary investment and increased legitimacy for the startups.
A summary (in english) of the interviews and the results of the thesis, will be presented shortly
