The key issue I am trying to figure out how the system will actually promote any new ideas once few ideas has bubbled up on the list and the leaders have been established? If someone now submits a new idea, that idea will be lost and buried in the big pile. How will a visitor ever get to see newly submitted ideas even if they are great?

I believe the system fails after some critical mass has developed and as the traffic grows. This is contrary to what other Web 2.0 sites do where more traffic means better content, better ideas.

Should I be analyzing this from different point of view? Am I missing something here? What do you think? Leave your comments.

• You have an idea that you can express in an email and communicate to other people

• Your idea makes sense and has potential for business

• You have 2  - 3 people who are willing to join you as founder or cofounder, who are passionate and are willing to take the plunge to materialize this idea

If all of the above is true companies like YCombinator are willing to mentor you and invest in you. YCombinator will give you somewhere between US$ 15 – 20K in cash. Two – Three months of mentoring and work space (I will equate this to another US$ 10 – 15K investment). So the total investment from YCombinator is of US$ 25 – 35K for 5 – 7% equity.

Keeping this simple equation in calculation – effectively YCombinator is putting the value of a startup with idea and passionate team in the range of

• Low side = 25000/7*100 = 357K
  US$

• High Side = 35000/5 *100 = 700K
  US$

There are number of additional factors that will come in play – your background, references, experience, maturity of idea, potential market size, industry etc. But, the simple calculation should hold.

Do you think the valuation of the company from 357K – 700K make sense. What do you think? Is this the right approach? Leave your thoughts.

If you are a pro in blogging and you think this is not a good idea leave me a note… or the link to lesson learnt.