Avoid These Tempting Startup Ideas

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Published 2022-11-23
Thinking of a new startup idea? Dalton Caldwell and Michael Seibel discuss the types of ideas to stay away from—what we commonly refer to as "tarpit ideas."

Apply to Y Combinator: yc.link/DandM-apply
Work at a Startup: yc.link/DandM-jobs

Chapters (Powered by bit.ly/chapterme-yc) -
00:00 - Intro
00:16 - Advice on pivoting - Tarpit ideas
00:38 - Tarpit definition
03:49 - Most tarpit - Consumer ideas
04:56 - Why do founders choose consumer ideas so much
06:37 - Why is it hard doing consumer stuff
07:21 - What's the bar for a startup
07:43 - Google
09:53 - Facebook
11:19 - Timing - Web 2
13:38 - Smartphone
14:21 - What is a tarpit idea?
15:45 - App to discover new things
16:34 - Why they don't work
19:37 - Recent target ideas
20:27 - Web3 - Rebuilding the world
21:38 - Theory of supply and demand
23:29 - Demand side
26:13 - Best pivots
27:49 - Closing thoughts

All Comments (21)
  • @ycombinator
    What are some other examples of tarpit startup ideas?
  • @MrMajani
    While it's true that consumer businesses are tougher than enterprise, one small secret YC won't admit to is that it's also much easier for a large incubator to seed an enterprise business. Just get them to sell to other YC companies and viola, they have traction immediately
  • Dalton and Michael: "F*** your stupid a** restaurant discovery app". Me: While cradling my project wrapped in a blanket whispering "Don't listen to them. You're the prince that was promised." 🤣
  • @lensvana
    Great stories, thanks guys. A few thoughts from a ex-Valley grunt: - Recent grads don't even talk about targeting businesses because a) it's not sexy, b) they don't yet know what the specific industry needs are, and c) they cannot conceptualize how much money there is waiting to be deployed in the business world (there's a mountain of it) - To come up with the best business ideas, you either have to be a) crazy enough to try it without domain expertise ("you don't know how much you don't know") or have experience with the specific pain at a previous employer (video idea for you guys: how to recognize when it's time to jump ship and pitch your idea to your former employer). - If YC is truly interested in more startups like this (this is music to my ears), YC may have to pivot their brand messaging (yes). Because right now YC (from the outside looking in) seems like a post-grad program for Stanford/Ivy kids. I know that's not what it is, but ultimately every accelerator is known for their household name successes (e.g. Airbnb). So the Australian mining guy - and thousands of potential superstars like him - may see videos of all these kids running around with pitch decks and hoodies and think "nah, they wouldn't be interested because I can't promise them a 100 billion dollar sexy idea."
  • @spol
    Great episode but never forget that a lot of incredible startups accomplished what a graveyard of startups trying the same thing couldn’t. Sometimes all you need are a few important tweaks. Just know exactly what those are and why if you are going into the tar pit.
  • @Sondre7
    Love how encouraging Michael Seibel is to everyone else in these podcasts, with his voice, words, body language, it is like just a river of positive feedback and encouragement for everything anyone else says that is good By the way I continue to find these so valuable. I basically listen to no other podcasts. I have founded two somewhat successful startups, and I am so glad you havent hired some social media clickbait person, but stay authentic and deliver actual true knowledge on how to succeed with a startup here
  • @cpmcmanaman
    God, I love these videos. They are just so insightful and able to explain things effectively/impactfully. I need to rewatch their videos to keep the messages in the forefront of my brain. You see the slippery slope that we can all fall into as founders.
  • @wanjohi
    I have been waiting for this one, for a very veeeery long time (after getting a sneak peek during startup school 2022). It is finally out. THANK YOU!
  • @goesinevent
    Dalton and Michael share a brilliant concept here on this video. For our generation of folks born post 1990, I think is so hard to have someone committing to `boring` ideas. More than ever, we values cool ideas as a right and benefit of our generation, so doing boring stuff can be deemed even as a punishment on them. We have been lucky to go through YC, raising funds and getting to 150 employees on our business focused app.
  • @aytunch
    This is a very sincere and educational video. However there is an unsolved mystery. For instance a fully consumer social app called BeReal became such a hit recently. The content is just images. No videos, no video calls, no audio rooms. So simple to implement. If the founders of BeReal thought to themselves if their idea was a tarpit, they would agree that their idea is the definition of a tarpit. So can you please make a video on how these founders managed to make unicorns from their tarpit ideas. What is the trick? We would love that. I just love watching you two, keep more coming :D
  • @chan90s
    This is an extremely good episode. I had visceral feeling about these ideas while I was starting but this video comprehensively explained.
  • Great discussion. Very insightful. I think the concept of tarpit is really really important. I have experienced this first hand in our first iteration of the product which was a self host-able PaaS. So, I think it can also happen in enterprise software space. But interesting insight for me, or a parallel I can draw for these enterprise tarpit products would be that they often target hobbyist, early stage startups and SMBs.
  • @baba00eddy
    I cannot thank you enough. This is the most important video you’ve ever shared.
  • I have co-founded 2 startups and eventually realised exactly what Michael and Dalton are saying. So do extreme discovery research from problem space to every competitive space. It's much much much better to figure out stuff before you have spent a lot of money and effort than afterwards. And most of the time at the end of this figuring out you will find that "This Product is not needed!"
  • Excelent content, I'm trying to get some directions to start my own startup and this seems one of the great places to get advice. For now what I find difficult is that everyone has a different opinion and doesn't seem to have a single unique path to find success. The analogy of finding gold is very inspiring. Usually you dont find gold in the middle of Manhattan you go to a faraway place often times unexplored. This seems to be the most objetive advice even though is not super objective it is a great pointer for you to understand that you will endure a unique self exploration path that it's not guaranteed to be successful. This seems to be it. Another great advice I took was from Peter Thiel. Being an entrepreneur is more like being a detective. Obviously if you want to start a consultancy company or open a restaurant this advices don't apply the same way and you can be successful too in a different way. Maybe by copying someone's business model but you gonna get much more competition and you might be capped to a dozen millions dollars which is not necessarily bad but... Why not got to the bigger tank?
  • @firstemail
    Thank you very much for sharing this wisdom. Very informative and impactful.
  • That is one of the most valuable videos on startup ideas, thank you.
  • Thank you guys, we appreciate the best advise from you guys