Y Combinator Model “Too Messy” for Microsoft, Says YC Founder
8/8/08Follow @bbuderi  On Wednesday, Greg highlighted the
provocative suggestion of Kevin Merritt, CEO of Seattle startup
Blist, that Microsoft should return to its “risk taking,
entrepreneurial roots…” by investing in early-stage startups
along the lines of the Y Combinator model. By supporting the
startups in return for some stock and a commitment to use
Microsoft development software, product platforms, and operating
systems, Merritt argued, the software giant could potentially
catalyze a lot of innovation that would help keep its products
relevant and on the leading edge.  The story drew a lot of
attention. But does Merritt’s idea have merit in the real world?
I figured who better to ask than Paul Graham, the founder of Y
Combinator. The firm—based in Cambridge, MA, during the summer,
and Mountain View, CA, in the winter—provides seed funding of
under $20,000 to startups and then works with the entrepreneurs
to help advance their ideas to the