Silicon Valley Investor: Focus on Founders, Not Just AI to Be Successful

Paul Graham, co-founder of Y Combinator, emphasizes that not every new company needs to focus on AI to be successful. He believes that founders matter more than the idea behind the business, and good investors will see a talented team. Graham's track record includes backing over 4,000 startups, including Airbnb, Reddit, and Twitch. He encourages entrepreneurs to pursue non-AI ideas if they are good and driven.

Paul Graham, co-founder of Y Combinator, has offered a straightforward message to aspiring entrepreneurs: not every new company needs to focus on artificial intelligence (AI) to achieve success. In a series of recent social media posts, Graham emphasized that the quality of the founders is often more critical than the specific idea behind the business [1]. This perspective is backed by Graham's substantial track record, having backed over 4,000 startups since 2005, including Airbnb, Reddit, and Twitch.

Graham's latest comments highlight that the two most impressive companies in the current Y Combinator batch are not focused on AI. He asserts that while AI is indeed important, the founders are the best predictor of a company's success. This stance echoes his long-held belief that a startup founder's entrepreneurial skill is the most reliable indicator of success [1].

The AI-focused startups raised $104.3 billion from venture firms in the first half of 2025, matching the full-year total from 2024, according to PitchBook. Despite this significant investment in AI, Graham's message underscores that entrepreneurs should not feel pressured to focus on AI to attract investors. Good investors, he believes, will recognize and support a talented team, regardless of the industry or technology focus [1].

Other investors share Graham's perspective. Josh Browder, founder of DoNotPay and an investor in over 100 startups, bases his investment decisions primarily on whether a startup's founder has a deep connection to the problem they are trying to solve [1]. Similarly, real estate mogul Barbara Corcoran, a judge on ABC's "Shark Tank," invests in entrepreneurs she believes in, regardless of their industry or whether their business is profitable [1].

The acquisition of Flowise by Workday further illustrates the evolving landscape of AI in business. Workday, a money and people management vendor, has acquired Flowise, a low-code visual development tool for building AI chatbots and agents. This acquisition aims to plug a gap in Workday's platform by offering a means of quickly building and deploying AI agents within the HR and finance domains [2].

Workday's acquisition aligns with the broader trend of integrating AI into enterprise solutions. A recent Workday study found that while AI agents are expected to become ubiquitous, people remain cautious about their role in the workforce. The study revealed that while 93% of respondents trust AI agents when used responsibly, only 30% feel comfortable with the prospect of being managed by AI [2].

In conclusion, Paul Graham's advice to entrepreneurs underscores the importance of founders over AI focus. Good investors recognize the value of a talented team, regardless of the technology or industry focus. The acquisition of Flowise by Workday highlights the growing integration of AI into enterprise solutions, but also the ongoing need for human oversight and trust. As AI continues to evolve, the role of founders and investors in guiding its responsible implementation will remain crucial.

References:
[1] https://www.cnbc.com/2025/08/18/yc-co-founder-paul-graham-not-every-new-company-needs-to-be-about-ai.html
[2] https://diginomica.com/workday-acquires-flowise-build-ai-agents-people-dont-want-ai-bosses