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Dalton + MichaelDalton + Michael

Want to Build a Great Startup? Start Having Fun.

The best startup founders have a secret advantage: they have fun. Dalton and Michael discuss how you can embrace "Type 2 Fun" and enjoy the adventure. It's not just a mindset, it's a requirement to build an enduring company. Discussion includes: the difference between type one and type two fun, why type two fun is more rewarding than “empty calorie” fun, how reframing hard days as fun unlocks endurance, why people fondly remember their hardest startup moments, how to tell if you’re a replaceable employee, why learning to love being uncomfortable is how you stretch yourself, how to transfer grit from sports or academics to your startup, why a competitor who is having a great time is the hardest to beat, why you shouldn’t wait for the torture to end, why people suited to be founders are under-stimulated by normal work, the personal inventory founders should take (rent, safety, sleep, food, exercise) before pushing hard, why liking your users, your problem and your teammates helps, and why the startup journey is an adventure worth enjoying. 0:00 Introduction to type two fun 1:53 Learning to enjoy hard things 4:34 The mindset shift in startups 5:41 Learning to love being uncomfortable 6:53 Transferring grit from life to startups 8:38 The competitive edge of type two fun 11:01 Flipping the mindset switch 12:10 Seeking challenge vs. seeking comfort 13:08 Maintaining a healthy foundation 14:31 Viewing the startup journey as an adventure 15:54 The unfair advantage of great founders _ Dalton + Michael is brought to you by @Standard_Cap. Standard Capital is the AI-native Series A fund. Learn more at standardcap.com – About Dalton: Dalton Caldwell is Co-Founder and Partner of Standard Capital. He spent 12 years at Y Combinator, where he served as Managing Partner, worked across 25 YC batches, and advised more than 1,000 startups. His investments include Whatnot, Brex, GitLab, PostHog, Stock Space, Rappi, Razorpay, and Oklo. Before becoming an investor, Dalton founded imeem and App.net. About Michael: Michael Seibel is a Partner Emeritus at Y Combinator, where he served as Managing Partner of the early stage accelerator from 2014 - 2024. Michael also serves on the board of three companies: Reddit, Dropbox, and Kalshi. He moved to the bay area in 2006, and was a co-founder and CEO of two Y Combinator startups Justin.tv/Twitch (2007 - 2011) and Socialcam (2011 - 2012). In 2012 Socialcam sold to Autodesk Inc. for $60m and in 2014, under the leadership of Emmett Shear (CEO) and Kevin Lin (COO) Twitch sold to Amazon for $970m. – Are you an AI builder? Check out StandardDB. Discover offers, credits, tools, and partner programs from the StandardDB ecosystem.

Michael SeibelhostDalton Caldwellhost
Oct 12, 202617mWatch on YouTube ↗

At a glance

WHAT IT’S REALLY ABOUT

Great founders win by enjoying the hard parts of startups

  1. Dalton Caldwell and Michael Seibel define “type two fun” as work that feels difficult in the moment but becomes rewarding and even joyful in retrospect, and they argue startups are best approached this way.
  2. They claim founders can deliberately reframe daily hardship from suffering into meaningful challenge, making persistence through long, uncertain periods far more likely.
  3. They position loving discomfort—rejection, ambiguity, grinding practice—as a competitive advantage because it enables faster growth and longer endurance than competitors who avoid hard work.
  4. They caution that embracing hard work is not a call to neglect health or safety, and they recommend maintaining a stable personal foundation while choosing harder, higher-leverage actions at work.
  5. They conclude that the best founders’ “hidden advantage” is the ability to convert discomfort into motivation and treat the startup journey as an adventure rather than a countdown to relief.

IDEAS WORTH REMEMBERING

5 ideas

“Type two fun” is the right model for startup building.

Type one fun feels good in the moment (comfort/pleasure), while type two fun often feels hard in real time but becomes deeply rewarding in hindsight. They argue startup work is inherently type two fun—and embracing that framing changes everything.

Enjoying hard things is a learnable, intentional skill.

They emphasize that founders can intentionally reframe hard days from “suffering” into “I’m doing something meaningful and leveraged,” which increases motivation without changing the external circumstances. This is presented as a practical mental habit, not personality luck.

Type two fun is an endurance hack that compounds over years.

If every day feels like pain you’ll quit sooner; if hard work feels rewarding you’ll last longer, and endurance is a decisive advantage in startups (“If you don’t die, you win”). This mindset makes founders more likely to persist through the “trough of sorrows” (pre–product/market fit).

Great founders convert discomfort into motivation.

They argue most people default to homeostasis (seeking comfort), but standout founders learn to “love being uncomfortable” and even seek it. That shifts rejection, ambiguity, and repeated failure from demoralizing to energizing.

The grind is the value: improvement lives at the edge of failure.

Progress comes from pushing to failure—like sports training or sales reps collecting rejections—so discomfort is not a sign you’re doing it wrong; it’s where improvement happens. The goal is to recognize that the grind is the mechanism of growth.

WORDS WORTH SAVING

5 quotes

You can practice/learn to enjoy doing hard things.

— Dalton Caldwell

How much time are you going to spend on your startup if every day feels like suffering? And how much time are you gonna spend on your startup if every day feels rewarding?

— Michael Seibel

You get to choose of, like, whether you tell yourself a story that, "Wow, YC was really hard."

— Dalton Caldwell

Great founders turn being uncomfortable into motivation, and in turn, it fuels them.

— Dalton Caldwell

If you're spending the whole time on the adventure waiting for it to be over-

— Michael Seibel

Type one vs. type two funReframing hardship and mindset choiceEndurance as a startup advantageLearning to love discomfort and rejectionTrough of sorrows (pre-PMF grind)Avoiding milestone-based happinessHealth/safety guardrails and sustainable intensity

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