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.
Also huffduffed as…
Steve Blank — Startup are not smaller versions of large companies. A startup is a temporary organization that searches for a repeatable and scalable business model. Large companies execute known business model. Customer Development is the process startups use to search for the business model. Agile Engineering is how startups build their product.
This was such an eye-opener that I listened to it twice, back to back. The big idea here (for me) is this: There are two different kinds of innovation — technological innovation and innovation in rules. And having technological innovation without matching innovation in rules can lead to undesirable outcomes.
He also has some interesting things to say about cities.