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Gustaf Alströmer (Y Combinator, Airbnb)02 March 2023

Lessons from working with 600+ YC startups

6Frameworks
14Insights

Episode overview

Y Combinator group partner Gustaf Alströmer distills lessons from working with more than 600 startups, emphasizing that failure often begins when founders avoid customers and therefore never reach product-market fit. He explains how YC office hours create focus, accountability, and peer support, and argues that strong founders combine determination, technical ability, rapid execution, customer obsession, and clear communication. The conversation also examines why technical co-founders matter and why climate technology has become both an enormous business opportunity and a practical destination for experienced software and product talent.

Key ideas

  • Talk directly with customers—and observe their real workflows—to discover intense problems rather than relying on external validation or abstract opinions.
  • YC office hours focus founders by asking what is slowing them down, while group sessions create accountability and reduce the loneliness of company-building.
  • Technical founders or deeply empowered technical founding-team members enable the rapid, continuous product iteration that outsourced specifications rarely provide.
  • Successful founders tend to be determined, technically capable, fast-moving, customer-focused, and strong communicators who can inspire teams and investors.
  • At an early-stage startup, execution and a single clear priority matter more than broad corporate-style strategy.
  • Fast, continuous weekly or biweekly progress is a more meaningful success signal than press attention, investor interest, or participation in a fashionable market.
  • Climate technology is becoming a vast commercial opportunity as governments, corporations, and capital shift toward decarbonization, electrification, and carbon removal.

Transcript available · source text is retained privately and is not published

Frameworks in this episode

People & resources mentioned

Attributed to the moment in the episode. Timestamps are approximate.

People · 13

  • Lenny RachitskyCoinedtoday we've got another very special compilation episode something I've been pulling on more and more with the podcast and the newsletter

    welcome to Lenny's podcast where I interview world-class product leaders and growth experts

  • Gustaf AlströmerMentionsGustav is a group partner at Y combinator where he's been for almost six years prior to that Gustav was at Airbnb

    today my guest is Gustav alstromer Gustav is a group partner at Y combinator

  • Brian CheskyMentionsBrian chesky at Airbnb there was a whole article where we unpacked this moment in their product development cycle

    a really successful company thanks to Joe and Nate and Brian just for starting this

  • Nate BlecharczykMentionsmentioned

    a really successful company thanks to Joe and Nate and Brian just for starting this

  • Joe GebbiaMentionsAt Airbnb, he discussed employees identifying with both their discipline and cross-functional team.

    a really successful company thanks to Joe and Nate and Brian just for starting this

  • Elad GilMentionsI really love elad Gill's High grth handbook

    this quote that elod gill tweeted once and he wrote a think a post about it

  • Jessica LivingstonMentionsToday my guest is Jessica Livingston. Jessica is the co-founder of Y Combinator

    if I think back on the Paul and Jessica's motivation started YC

  • Paul GrahamMentionsPaul Graham talks about this too right just like live in the future and build it

    one of the most important moments in Airbnb history was Paul Graham telling the founders of Airbnb where are your customers

  • Marc AndreessenMentionsMark Andre had this visual on some podcasts have just imagined a 100,000 drones just coming out of China just at us.

    it reminds me of a quote that I always that I love from Mark Andreessen

  • Sam AltmanMentionsthere's everybody has uh and had and continues to have like such deep trust in in Sam and Greg and our leadership team

    first request for startup is actually Sam Altman and a few other folks

  • Diego Saez GilMentionsYC alumni and Pachama co-founder

    when I spoke to Diego from pachama in 2018 when he was starting pajama

  • David RusenkoMentionsmentioned

    most recently me and another guy David rosenko wrote this request for startup

  • Solomon Goldstein-RoseCoinedmentioned

    it's called 100 solution this book is for it's written by Solomon Goldstein Rose

Resources · 47

  • Lenny's PodcastCoinedpodcast · Lenny Rachitsky

    welcome to Lenny's podcast where I interview world-class product leaders and growth experts

  • GitHubMentionssoftware · GitHub

    powerful keyboard shortcuts efficient GitHub Integrations cycles that actually create progress

  • VercelMentionscompany · Guillermo Rauch

    it Powers a wide range of large established companies such as versel retool and cash out

  • RetoolMentionssoftware · Retool

    it Powers a wide range of large established companies such as versel retool and cash out

  • LinearRecommendssoftware · Linear

    visit linear dot app slash Lenny to try linear for free with your team

  • Cash AppMentionsproduct · Block, Inc.

    it Powers a wide range of large established companies such as versel retool and cash out

  • CameoUsescompany

    companies like netlify contentful and Cameo rely on Apple to power their experiments

  • ContentfulUsescompany

    companies like netlify contentful and Cameo rely on Apple to power their experiments

  • NetlifyUsescompany

    companies like netlify contentful and Cameo rely on Apple to power their experiments

  • EppoRecommendssoftware · Eppo

    check out eppo at getepo.com get eppo.com and 10x your experiment velocity

  • YC Demo DayMentionsevent · Y Combinator

    they try to recreate what I see inside Airbnb a couple of times with with demo day

  • Y CombinatorUsescompany · Paul Graham and co-founders

    we actually asked this in one of the early group office hour sessions

  • Mountain ViewMentionsplace

    the best experience of this was in person in a ring in Mountain View with no computers

  • New York CityMentionsplace

    where are your customers and they're like oh they're New York

  • Do Things That Don't ScaleMentionsother · Paul Graham

    I think he wrote the article do things that don't scale

  • LinkedInUseswebsite · LinkedIn

    they actually like ran ads I think on LinkedIn to find specific people to talk to

  • TechCrunchMentionswebsite · Michael Arrington

    you hear about in TechCrunch or something like that

  • YouTubeRecommendswebsite · Google

    you cannot watch them on YouTube right now

  • YC Startup SchoolCoinedcourse · Y Combinator

    I've recorded two videos on on YouTube as part of YC startup school

  • Microsoft ExcelUsessoftware · Microsoft

    they will do the same thing in like Excel like a million times

  • YC Co-Founder MatchingUseswebsite · Y Combinator

    we built something called co-founder matching with those funders can meet

  • CalendlyMentionssoftware · Tope Awotona

    the CPO of calendly she talked about how when calendly started they actually had a Ukrainian deaf team built the first product

  • PandoRecommendsproduct · Pando

    visit pando.com Lenny for more info and get a special discount

  • TeslaMentionscompany · Tesla, Inc.

    if you look at something like Tesla which now has a I don't know six seven hundred billion dollar market cap

  • PachamaMentionscompany · Diego Saez Gil and Tomas Alvarez Belon

    when I spoke to Diego from pachama in 2018 when he was starting pajama

  • Climate DraftMentionscompany

    this organization called the climate draft put together of PMS that are in climatech

  • SeaboundMentionscompany

    one of them is c-bound who is building carbon capture removal for ships

  • FleetzeroMentionscompany

    the other one is Fleet zero who build electrical ships

  • CarbonChainMentionscompany

    this company called carbon chain which is focused specifically on supply chain and shipping and raw materials

  • SINAI TechnologiesMentionscompany

    and then this and I here in in the Bay Area

  • PlaidMentionscompany · Zach Perret and William Hockey

    they are basically building plaid for Ev Chargers and plaid for home Energy System

  • EnodeMentionscompany

    there's a company called enode they are basically building plaid for Ev Chargers and plaid for home Energy System

  • StatiqMentionscompany

    another related company is called Static static is the Airbnb for EV charging in India

  • Heart AerospaceMentionscompany

    we have a hard airspace and right electric and a few others folks in aviation

  • Wright ElectricMentionscompany

    we have a hard airspace and right electric and a few others folks in aviation

  • Inflation Reduction ActMentionsother · United States Congress

    in the United States we got the IRA which is like it's called the inflation reduction act

  • ToyotaMentionscompany

    they don't want to be the Toyota to Tesla

  • The 100% SolutionRecommendsbook · Solomon Goldstein-Rose

    that's why I recommend that book more than almost anything else that's probably my number one book

  • NetflixUsescompany · Netflix

    I love Emily in Paris on Netflix

  • Everything Everywhere All at OnceRecommendsfilm · Daniel Kwan and Daniel Scheinert

    we watch the um everything all at once I thought that was a really good movie

  • Emily in ParisMentionstv show · Darren Star

    I love Emily in Paris on Netflix

  • The White LotusMentionstv show · Mike White

    we have a drinking game here people say White Lotus we drink

  • SwedenRecommendsplace

    first of all you should visit in the summer it's a really good time to be there

  • TwitterUseswebsite · Twitter

    I tweet sometimes on twitter.com Gustav

  • SpotifyRecommendssoftware · Spotify

    you can subscribe to the show on Apple podcast Spotify or your favorite podcast app

  • lennyspodcast.comRecommendswebsite · Lenny Rachitsky

    you can find all past episodes or learn more about the show at lennyspodcast.com

  • Apple PodcastsRecommendssoftware · Apple Inc.

    you can subscribe to the show on Apple podcast Spotify or your favorite podcast app

Spot an error or want something removed? Request a correction or removal.

Insights & moments

The myth-busts, hot takes, explainers, and tools worth keeping.

Myth Buster· 1

Myth Buster11:30

No Founder Motivation Is Better Than Another

Pushing back on the idea that starting a company comes from desperation, Gustaf argues most founders start from a positive place. Motivations vary enormously, from solving a technical problem to changing the world to just wanting to build something big, and in his experience none of them predicts success better than another. The motivation also shifts over time, with running the company itself eventually becoming the driver.

  • Most founders start from a positive place, not from desperation
  • Motivations range from proving oneself to grand world-changing missions to simply wanting a big company
  • No type of motivation correlates with more success than another
  • The original motivation changes over time; running the company becomes its own reward
  • 'Boring' ideas can still be deeply motivating once the company is real

I actually think that most people in Star company start from the positive place

Gustaf Alströmer · 11:30

it doesn't matter in my experience what your motivation is

Gustaf Alströmer · 12:30
#motivation#founders#startups

Hot Take· 4

Hot Take14:00

Don't Start a Company as a Resume Line

Gustaf names one clear reason not to start a company: treating it as a career step. A successful startup becomes your entire career for roughly a decade, and an unsuccessful one isn't something people aspire to. He won't discourage founders who simply haven't figured out their 'why' yet, but he does flag founders whose financial, family, or relationship constraints will outweigh the company.

  • Viewing a startup as a resume step is a good reason NOT to start one
  • If it succeeds it becomes your entire career, most likely 10 years
  • Not knowing your 'why' at the start is fine; it can be found along the way
  • Real red flags are financial, family, or relationship constraints that will trump the startup
  • Startups are much harder than a normal job, whether they succeed or fail

a good reason to not start a company is if you think of starting a company as a career step well it is not because…

Gustaf Alströmer · 14:30
#motivation#founders#advice
Hot Take45:00

YC Can't Predict Winners, Only Prevent Failure

Gustaf is candid that YC cannot pick which startups will become the monster hits; the outliers succeed for reasons that are unknown and often don't make sense to anyone. What YC is good at is recognizing what failure looks like, so they tell founders how they're likely to fail. The strongest signal of a company on track is bringing genuinely new progress to each office hour, week over week.

  • YC can't reliably predict which startup will be the biggest success
  • Outlier winners succeed for unknown reasons that often seem illogical
  • YC's real skill is recognizing failure patterns and warning founders directly
  • Many hyped signals (hot industry, TechCrunch coverage, investor interest) are uncorrelated with success
  • Consistent weekly or bi-weekly progress is the best available indicator

the truth is that we're not not very good at knowing what's going to succeed

Gustaf Alströmer · 45:00

if you fail please do it in some new exciting way not one that we've seen 100 times

Gustaf Alströmer · 45:30
#yc#investing#prediction#progress
Hot Take52:30

Strategy Doesn't Matter for a Small Startup

Gustaf has a strong opinion that strategy is a corporate-world concept from business school and doesn't apply to small startups. A startup can only do one thing at a time, so it's about execution and a single ordered priority list, not strategy sessions. Wanting a strategy conversation usually signals confusion about priorities; a startup's only real strategy is getting people to want the product.

  • Strategy is rooted in business school and the corporate world
  • Small startups can only do one thing at a time, so execution matters most
  • Priorities are a strict top-to-bottom list with one thing that matters most
  • Wanting a strategy session signals you don't understand your priorities
  • Until you have product-market fit, getting people to want your product IS the strategy

when you are a small startup strategy does not matter because there's not that much a strategy is about

Gustaf Alströmer · 53:00

the good Founders are execution oriented

Gustaf Alströmer · 54:00
#strategy#execution#startups#priorities
Hot Take59:30

Climate Tech Is a Business, Not Charity

Gustaf pushes back on the idea that climate tech is about doing good rather than making money. Governments have already decided to change the entire energy system, moving trillions of dollars from carbon-emitting things to clean ones, a transition far bigger than software. The economic motivation is as strong as the mission, and Tesla shows how large these companies can become.

  • Climate tech founders don't view their companies as non-profits
  • Governments have already decided to overhaul the entire energy system
  • Trillions of dollars are shifting from carbon-emitting to clean activities
  • The transition is far larger in scale than software
  • Tesla, at a ~$600-700B market cap on a few percent of US car sales, shows the ceiling

we're talking about trillions of dollars of money moving from things that cause climate change to things that don't

Gustaf Alströmer · 1:00:30

economical motivation behind the decisions that people are making are just as strong as I want to fix climate change because this is just a…

Gustaf Alströmer · 1:01:00
#climate-tech#business#investing#energy

Explainer· 4

Explainer18:00

Why Founding Is Lonely and How Group Office Hours Help

Gustaf explains that starting a company is intensely lonely because founders can't unload their fears on employees or investors. YC's group office hours put founders in a room together so they discover that every company is broken in some way, which is both reassuring and motivating. Founders become allergic to the question 'how's it going' because the honest answer is never great.

  • Founders can't lean on employees or investors for emotional support
  • Putting founders together reveals that all companies are broken in some way
  • Seeing peers solve similar problems is motivating and instructive
  • Group office hours also create accountability by revisiting two-week goals
  • Founders keep meeting in these groups for years after YC ends

starting a company is incredibly lonely you can't really lean on your employees and say hey I'm feeling really shitty as a Founder today

Gustaf Alströmer · 18:00
#yc#founders#loneliness#accountability
Explainer24:00

90% Aren't Early Adopters, So Reach 10 to Find 1

Gustaf explains the sales math that blindsides first-time founders: about 90% of customers are not early adopters and have no incentive to take risks on something new. To find the roughly 10% who are, you have to reach ten people to get one, and convincing that one to take a call is real work. Founders who've never done sales are consistently surprised by these percentages.

  • About 90% of the average customer base are not early adopters
  • Non-adopters are incentivized to avoid risk and keep doing what they do
  • You must reach roughly 10 people to find 1 early adopter
  • Getting that one person onto a call takes real, sustained effort
  • First-time founders are surprised because they've never done sales

take the average customer group in the world 90 are not early adopters it doesn't matter if you have something new and cool then just…

Gustaf Alströmer · 24:30

that means you have to reach 10 to find one

Gustaf Alströmer · 24:30
#sales#early-adopters#customers
Explainer32:30

To Find Real Pain, Watch Users Instead of Asking

Gustaf argues that asking whether someone has a problem produces useless answers because people don't know how bad their own workflow is. The better method is to watch them work: have them screen share and walk you through their daily workflow, or go use the bad product yourself. He points to non-technical people repeating manual Excel tasks and terrible non-Tesla EV charging apps as examples you have to experience to understand.

  • Asking 'do you have a problem with X' yields unreliable answers
  • People don't realize how painful their own workflow is
  • Watch users via screen share and walk-throughs to feel the real pain
  • Non-technical people repeat manual tasks (e.g. Excel) because they can't automate
  • Using bad products yourself (e.g. non-Tesla EV chargers) reveals the true problem

the best way for you to figure out what is the intensity of the problem is not to ask them but to watch them

Gustaf Alströmer · 32:30

so the best thing I've learned about how to discover the pain is to watch people have them screen share have them walk walk you…

Gustaf Alströmer · 33:30
#user-research#customer-discovery#product
Explainer34:30

Value Engineering, or You'll Never Find a Technical Cofounder

Gustaf says non-technical founders first have to learn to value engineering itself. He uses a friend's line about having a song idea and 'just needing a musician' to show how people undervalue the hard part. Offering an engineer only 10% equity signals you don't value engineering, and because most startup decisions and iterations are technical, you need a true technical cofounder rather than a contractor.

  • Non-technical founders often undervalue engineering as 'just building my idea'
  • The engineering part is the genuinely hard part of the company
  • A 90/10 equity split toward the non-technical founder signals you undervalue engineering
  • Technical people often want a business cofounder; you can just ask the best ones
  • Endless technical decisions and iterations require a technical cofounder, not a contract firm

he said I have an idea for a song I just need a musician to help me make it right

Gustaf Alströmer · 34:30

the truth is that the engineering part is the really hard part

Gustaf Alströmer · 35:00
#technical-cofounder#engineering#equity#founders

Story· 1

Story05:00

Why Airbnb Felt Like Family, Not a Job

Gustaf reflects on why the early Airbnb team was so special that alumni struggle to find anything comparable. He credits deliberate hiring: people genuinely excited to be there, culture interviews mapping core values, and a first cohort of PMs who were mostly former founders. The bar those early hires set defined who was hired afterward for a long time.

  • Alumni almost never find a workplace they consider better than early Airbnb
  • They hired people who were genuinely excited to build Airbnb, not just weighing offers
  • Culture interviews were used early to test whether candidates mapped the core values
  • The first 10-15 PMs were mostly former founders, which shaped how decisions got made
  • The first hires set the standard for every hire that followed

people don't like use the word family but I feel like that way because when I go and meet with MB alumni from that team…

Gustaf Alströmer · 06:00

be made sure we hired people that were really excited to be there right they wanted to build Airbnb

Gustaf Alströmer · 08:00
#hiring#culture#airbnb#founders

Tool· 1

Tool1:16:30

Book Rec: The 100% Solution for Climate Optimism

In the lightning round, Gustaf's top book recommendation is 'The 100% Solution' by Solomon Goldstein-Rose. It's written for people who think climate change is a problem but feel despair or don't know what to do, and it lays out all the solutions in detail. He gives it to anyone who cares about climate because it presents the situation optimistically rather than as doom.

  • Recommends 'The 100% Solution' by Solomon Goldstein-Rose
  • Written for people who feel despair or don't know what to do about climate
  • Covers 100% of the solutions in detail, like a deeper version of the YC request for startups
  • Counters doom narratives with an optimistic framing
  • His single most-recommended book

it's called 100 solution this book is for it's written by Solomon Goldstein Rose

Gustaf Alströmer · 1:17:00
#books#climate-tech#recommendations

Takeaway· 3

Takeaway22:30

The #1 Reason Startups Fail: Not Talking to Customers

Asked for the most common early-stage mistakes, Gustaf keeps returning to one root cause: founders don't talk to users, so they never learn what to build and never find product-market fit. Technical founders especially assume software solves everything and avoid the uncomfortable work of talking to people. His summary of it all is YC's oldest headline: make things people want.

  • Not talking to customers is the root cause of most startup failure
  • Without customer conversations you don't know what's important to build
  • Technical founders assume software is the whole solution and skip user contact
  • No amount of ideas matters if you don't validate them with customers
  • It reduces to the classic YC line: make things people want

I drill down like what makes companies fail it's it's quite simple it's just like they don't talk to users which means they don't find…

Gustaf Alströmer · 25:30

make things people want and that's it's still true and it's always going to be true

Gustaf Alströmer · 26:00
#customers#product-market-fit#startups#mistakes
Takeaway29:30

Customers Aren't Rejecting You, They're Indifferent

To defuse the fear of rejection, Gustaf reframes what actually happens when people don't use your product. Think of all the services you signed up for and forgot; you weren't hateful, just busy and indifferent. The worst outcome isn't people hating your product, it's total indifference, and indifference always gives you another chance to reach back out.

  • Founders fear that non-use means users hate the product and will warn others
  • The reality is people are just busy and indifferent, not hostile
  • Indifference, not hatred, is the most common and the truly dangerous outcome
  • Indifference gives you a second chance; you can re-approach later after improvements
  • Rejection should be read through the lens of early adopters, not personal failure

the worst thing that can happen to Startup is not that people hate what you're doing is that they're completely indifferent to what you're doing

Gustaf Alströmer · 30:00
#rejection#customers#mindset#founders
Takeaway40:30

The Traits Most Common in Successful Founders

Gustaf names the attributes he sees across successful founders: a determination to win that doesn't fold under pressure, an infectious internal motivation that attracts great teams, being technical enough to build, and moving fast to talk to users without waiting for permission. He adds excellent communication and storytelling, which motivates people and often correlates with enjoying fundraising.

  • Deeply determined to win and don't give up when things get hard
  • Infectious internal motivation that attracts strong teams
  • Technical enough that more technical founders are more likely to succeed
  • Move fast to talk to users without waiting for investor or YC permission
  • Excellent communication and storytelling that motivates people to follow them

the most important characteristics of those individuals are they're really determined to win and they don't give up when things are hard and they have…

Gustaf Alströmer · 41:00

the skill that's really attributed to Great Founders is excellent communication skills

Gustaf Alströmer · 42:30
#founders#success#traits#communication