Announcing YC funding is a media event that can be leveraged, just like a launch.
They want to make use of that event and release that information at the right time, to make the right kind of splash. Chances are only their closest friends know that they have YC funding, because if it leaked to, say, TechCrunch, they would lose the advantage of being able to announce their YC funding at the most advantageous time for them.
The ideas are obviously not stealth ideas if they have 20m uniques in 6 weeks.
I'm sorry, but this notion that a company can be made by a leveraged media event is stupid. Companies are made by having great products. If you have a great product, it doesn't matter when you show it off because there will always be an opportunity for getting new users.
This goes for hiring new employees too. Even if your beta version sucks and you aren't ready to show it off, yet its a product that works and fixes problems, job candidates will find a way to apply.
"If you have a great product, it doesn't matter when you show it off..."
I can refute your comment with one word: Apple.
Do you think their "leveraged media events" aren't effective? I used the believe (as you do) in the "Product Uber Alles" philosophy- no longer. Product is indeed the most important thing with the highest leverage. But it's not the only thing, and ignoring skillsets and tactics that can give you an advantage is silly.
Think of non-product bits as multipliers. If I have great PR, bizdev, marketing, pricing, etc., I can often beat a better product in the market.
There are zillions of markets where crappy/mediocre products are at or near the top of the heap.
My comment refers to startups. When you're building a company from the ground-up having a great product will sell itself. You don't get bizdev deals, advertising deals, or users talking about your product if it sucks. I work for a startup that hardly gets any press and you know what, it's cool, because we still manage to grow by 20% a month because our product is great.
There's more to planning your press and media attention than your product, though. Here are couple of benefits from a good PR strategy:
- Investors can hear about you
- Showing relevant press from a reputable source is a great way to overcome objections to your product
- It attracts excellent talent that is more risk averse than, say, someone who is willing to join early stage/pre money or when the startup is in stealth mode
- You get to set the tone of your brand in the public eye
- You can get a critical amount of press momentum with a lot of planning and a little bit of luck. The idea being that if you can get a few big -- or relevant -- publications to write about you at the same time, it will get the attention of secondary publications and down onto humble bloggers.
PR might not always be a good strategy for product awareness. But planning and guiding how the public sees you is a great strategy for any company.
It matters a great deal when and where you show things off. I don't even understand why this is a controversial statement. If you show off something really cool when people are watching you, you get great PR. If you show something off to an empty room, no matter how cool the product is, the net effect is that you convert some oxygen into carbon dioxide.
They want to make use of that event and release that information at the right time, to make the right kind of splash. Chances are only their closest friends know that they have YC funding, because if it leaked to, say, TechCrunch, they would lose the advantage of being able to announce their YC funding at the most advantageous time for them.
The ideas are obviously not stealth ideas if they have 20m uniques in 6 weeks.