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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 ↗

CHAPTERS

  1. 0:00 – 0:43

    Type two fun: the hidden advantage behind founder endurance

    Michael frames “type two fun” as an unseen edge of great founders—especially those who persist for 10–20 years. The episode sets up the idea that you can adopt this advantage by changing how you experience hard work.

    • •Type two fun as a common trait among admired founders
    • •Endurance as a core startup differentiator over years
    • •This advantage is learnable and accessible
    • •Episode focus: reframing hard work as fun
  2. 0:43 – 1:36

    Defining type one vs. type two fun (and why the second is more rewarding)

    Dalton defines type one fun as enjoyable in the moment, and type two fun as difficult during the experience but enjoyable in retrospect. They argue type two fun creates deeper reward than “empty-calorie” pleasure.

    • •Type one fun: fun while doing it (e.g., ice cream)
    • •Type two fun: not fun now, fun in hindsight (e.g., gym, mountains)
    • •Hard moments often become the fondest memories
    • •Type two fun tends to feel more meaningful/rewarding
  3. 1:36 – 2:17

    A learnable skill: practicing enjoyment of hard things during the startup grind

    Drawing from their YC batch talk, they argue founders can practice enjoying hard work. The claim: today’s stressful startup period can become the most fun period of your life—if you train that framing.

    • •They taught this mindset at the start of YC batches
    • •Founders can learn to enjoy hard work intentionally
    • •Hard startup years often become cherished memories later
    • •The goal is to shift how you experience the same daily reality
  4. 2:17 – 4:34

    Mindset as endurance: making hard days feel rewarding to outlast competitors

    Michael explains that founders already know how to work hard in other domains; the trick is transferring that model to startups. If every day feels like suffering you’ll quit early, but if it feels rewarding you’ll last—and endurance often wins.

    • •Most founders have mastered something hard before
    • •Transfer that “hard work → skill → reward” loop to startups
    • •Daily suffering reduces time-on-task; reward increases it
    • •Endurance creates a competitive advantage (“If you don’t die, you win”)
  5. 4:34 – 5:20

    Rewriting the story: trough of sorrows vs. ‘picking a complicated lock’

    They contrast two interpretations of the pre-PMF slump: ongoing hell versus an engaging puzzle. Seeing the work as an empowering challenge makes startup life feel like “really living,” compared to low-risk comfort in big companies.

    • •Same situation, different narrative: suffering vs. puzzle-solving
    • •The ‘trough of sorrows’ can be reframed as progress toward unlocking value
    • •Startups offer agency: your hands on the lock picks
    • •Comfortable, low-risk roles can feel less alive/impactful
  6. 5:20 – 6:53

    Learning to love being uncomfortable (and why comfort makes you replaceable)

    Dalton argues humans naturally seek comfort, but founders win by embracing discomfort. He suggests comfort-heavy environments can signal low leverage, while leaning into discomfort is how you stretch into exceptional work (e.g., sales rejection).

    • •Humans default to comfort/homeostasis
    • •Comfortable routines can correlate with low agency/replaceability
    • •Growth comes from deliberately seeking discomfort
    • •Sales skill comes from repeated rejection and reps until it’s familiar
  7. 6:53 – 8:56

    Transferring grit: sports/practice, pushing to failure, and cherishing hard moments

    Michael and Dalton connect startup grit to prior experiences like sports or academics where progress required grinding and failure. Michael notes he remembers near-death company moments far more vividly than the “success” moments—because that’s where meaning is created.

    • •You don’t learn grit from scratch—you’ve done it elsewhere
    • •Improvement comes from grinding and pushing to failure
    • •Hardest company moments become most cherished memories
    • •Peak effort (like a PR) is more memorable than easy warmups
  8. 8:56 – 10:11

    Why YC warns against ‘we made it’ comfort—embracing an uncomfortable environment

    They explain why they gave this talk at the start of YC: some founders mistakenly think acceptance means ease. Instead, YC is intentionally uncomfortable—surrounded by peers and high odds of failure—and staying motivated there is a superpower.

    • •Many founders relax after getting into YC; that’s dangerous
    • •The invitation: embrace discomfort with peers around you
    • •Being in a high-failure environment is inherently uncomfortable
    • •Winners expect adversity and commit to being the exception
  9. 10:11 – 11:37

    Type two fun as a competitive edge: discomfort becomes fuel (photosynthesis for founders)

    Dalton describes great founders as converting discomfort into motivation, like plants converting sunlight into energy. Competing against someone who’s enjoying the struggle is uniquely hard—because they’re not waiting for the pain to end.

    • •Great founders convert discomfort into motivation
    • •This isn’t about tolerating pain; it’s about enjoying the process
    • •A competitor who loves the grind is hard to beat
    • •Avoid the trap of ‘it gets easy after Series B’—it often doesn’t
  10. 11:37 – 12:09

    Flipping the switch: intentional reframing from ‘suffering’ to ‘I’m alive’

    They emphasize a mental switch founders can flip when they catch themselves milestone-counting or wishing the journey away. Dalton argues the reframing is a choice: tell yourself a story where the hard work is exciting, meaningful, and fun.

    • •Notice the ‘I can’t wait until X’ milestone mindset
    • •Choose a different story: today is meaningful and fun
    • •Motivation increases when hard work is interpreted as aliveness
    • •This shift is framed as a learnable, intentional practice
  11. 12:09 – 13:08

    Seeking challenge vs. seeking comfort: why high performers are bored without difficulty

    Michael compares honors vs. regular classes: the grinding environment can actually be more fun because it’s stimulating. They argue many founders are inherently challenge-seekers, and comfort-seeking undermines the very reason they chose startups.

    • •High-challenge environments can be more enjoyable than low-effort ones
    • •Comfort can create boredom/under-stimulation for founders
    • •Many founders chose startups because they crave challenge
    • •Lean into harder problems rather than optimizing for ease
  12. 13:08 – 14:29

    Keep the foundation healthy: guardrails, self-care, and focused ‘hardcore’ hours

    They clarify they’re not advocating self-destruction; founders need basic stability (rent, safety, sleep, food, exercise). The point is to spend work hours doing the uncomfortable, high-leverage tasks instead of hiding in low-friction busywork.

    • •Maintain a baseline: safety, rent, sleep, nutrition, exercise
    • •Not advocating extreme risk or burnout
    • •Use limited daily hours for high-leverage discomfort
    • •Avoid ‘hiding behind the keyboard’ instead of doing hard tasks
  13. 14:29 – 17:21

    Make it an adventure: align with users, problem, and teammates to sustain type two fun

    They suggest practical accelerants to enjoying the grind: like your users, care about the problem, and work with people you genuinely enjoy. With that alignment, win or lose, the startup becomes a memorable adventure—and the ultimate unfair advantage is learning to turn discomfort into fun.

    • •Liking users and the problem reduces negativity loops
    • •Working with friends/people you like makes hard work enjoyable
    • •View the journey as an adventure, not something to endure
    • •Reframing + alignment makes founders ‘unstoppable’ over time

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