"They took VC money when they have paying customers and a working business model and it was time to grow the company."
Paypal had no idea what their business model was going to be when they took VC (they tried to fight off ebay sellers to begin with), their idea changed every week. They actually raised money so they could buy users (literally, they gave users money if they signed up).
"entrepreneurs should concentrate on building their company with their own money FIRST"
it's precisely because this isn't an option for young founders out of college that something like YC exists. we have no money of our own in the first place so taking external investment is our only option.
It is actually not a VC but more like an adoption agency that takes promising orphans off the street (not based on needs and not based more merits, but based on genetic match) ... feed them and cloth them, then send them off to foster parents (real VC's) who can afford to bring them up properly.
I don't mean to be harsh. And I have great respect for everyone who is involved with YC. And I am certainly not trying to be a sour grape.
Paypal had no idea what their business model was going to be when they took VC (they tried to fight off ebay sellers to begin with), their idea changed every week. They actually raised money so they could buy users (literally, they gave users money if they signed up).
"entrepreneurs should concentrate on building their company with their own money FIRST"
it's precisely because this isn't an option for young founders out of college that something like YC exists. we have no money of our own in the first place so taking external investment is our only option.