Y Combinator Inspires Imitators

Paul Graham's intensive workshop permits investors and startups to check each other out with a minimum of risk and a maximum of potential

Paul Graham knows that most startups will eventually fail. But at Y Combinator, the hacker guru's seed fund for young techies, they're encouraged to fail fast and fail cheap—and then to reboot and start again. Designed with the new economics of Web-based entrepreneurship in mind, Y Combinator is a new type of venture fund—dispensing tiny amounts of cash but lots of hands-on mentoring.

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