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The mechanics

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Analysis by ViralLoop — not written by the original author.

Paul Graham on Founder · ViralLoop

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Paul Graham@paulg

Coinbase and Bloom Tech illustrate the dangers of starting a startup in a regulated industry. When I was a kid I used to think that regulators (and prosecutors) were merely trying to protect everyone. What other motive could they have? But boy are they not.

3.6K likes128 repliesPosted Apr 18, 2024

View the original on X Written by Paul Graham. Captured Sep 4, 2026.

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51

Viral score

Based on absolute engagement — the platform doesn’t expose follower counts here, so large accounts score higher.

From likes, comments.

Why it worked

Written from experience rather than as advice, which is harder to argue with.
Short enough to read in full without expanding, which removes a step before the point lands.
Short sentences keep the pace up, so the reader never has to re-read a line.

The mechanics

Hook: Plain observation
Structure: Hook → Landing
Style: Conversational paragraphs at a steady pace.
Tone: personal
Written for: Founders and early-stage teams

Analysis by ViralLoop — not written by the original author.

Topics

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More from Paul Graham

A recent YC startup spent 250k on a domain. I was slightly shocked. But when I asked how much they raised after YC, the answer was 6.5m. So 1/26 of their round. This is the time we live in; one shocking number counterbalances the other.

A Brown professor gave his students a take-home midterm exam. After suspecting many cheated using AI, he made the final in-person. The orange dots are the midterm scores and the gray dots are the final scores. Looks like all but 3 cheated on the midterm.

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One of the things Musk vs Altman shows is how much more promising AI is than anyone expected. Sam could have started it as a for-profit company. His life would be much simpler now if he had. But he didn't realize in 2015 that AI would warrant more than you can raise in donations.

When companies grow fast, it makes founders doubly rich. The company not only hits a given revenue number sooner, but is *more valuable when it hits it*, because the value of the company will be a multiple of the growth rate.

If you're working on an early stage startup, don't be deterred from using Anthropic just because you might want to sell to the DoD one day. Early on you need to focus on making your product the best. If you get the best results from Anthropic models, use them.