It’s interesting that natural organisational entropy made them become who they replaced. Arguably it’s just the nature of capital itself.

Yes. Although I would label it a bit differently, not plain "capital": human nature and group / organizational dynamics. That's the reason why many smart companies try to stay small, the reason for spinoffs, skunkworks, for creative destruction or reinvention a la HP (see the HP Way and other articles about them - of the time when they were in their prime decades ago, not now or recent). And that is also the point of my comment in this other subthread, about the IBM, HP and Toyota Ways, Sam Walton / Walmart, Tom Peters, etc.:

https://news.ycombinator.com/item?id=26558308

Capital creates a power dynamic when it starts to consolidate. The newcomers then change from innovation to defence as to maintain their wealth.

Yes, but I was saying earlier that I didn't prefer the use of the word "capital", because it is abstract - a thing (money), not an actor. And I mentioned human nature i.e. people, who are real actors. Your use of the word "newcomers" (who are people, not money) says the same. Maybe just a matter of wording or interpretation.

That doesn't match what YC is doing at all. YC is trying to be a force multiplier to literally anyone in the world with an opportunity to create a great startup. Part of that involves expanding as rapidly as is feasible without breaking the system or diluting the effect. It is about creating wealth, not defending or maintaining it.

Sure it does. Successful YC companies have become the gatekeepers of the internet.

Sorry, you lost me. I don't see what that has to do with the topic. I also don't see that it's true, but that's probably not the high-order bit.

It has less to do with YC and more to do with the nature of success, network and accumulation of resources. What it has to do with the topic is that it has created an inequality where YC companies have an advantage through access to the network. You just have to look at OpenAI access model to understand how this creates a two tier environment. YC alum can pick up the phone and have access them same day just to fuck around and potentially make a new unicorn business. People on the outside? Good luck. Yes I understand that OpenAI isn’t a YC company but the same will apply to YC companies... OpenAI was just my personal most recent experience.

>natural organisational entropy

Bon mot, considering the title of PG's essay :)