Better models, better startups.

less than 1m read

·Nov 3, 2024

Um, this can just basically supercharge that and, you know, have one person do the work of 10.

Yeah, we call this episode "Better Models, Better Startups." I think that is literally true for B2B companies, where it's like the underlying models—like B2B software business models—are so much about how do I upsell? Like, how do I make more money per customer next year than I did this year?

And it just—hey!—like every time the model gets better, you can just pass that along as like an upsell, premium feature, or an upgrade to the software, and your end user doesn't care. Right?

Right! Like, they just care about what the function the software can do for them.

And so, I think there's a world where the models keep getting better, you've got your choice of which one to use, and the additional functionality you just charge more to your customers for, and you make more money.

Yeah, that's definitely what we're seeing at YC. I mean, last batch, people were making $6 million a year right at the beginning of the batch, and it ended up being north of $30 million by the end of the batch.

So, that's some really outrageous revenue growth in a very, very short amount of time—three or four months.

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Better models, better startups.

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