There's this famous observation that I totally believe: Great startup ideas are the ones that lie in the intersection of the Venn diagram of 'is a good idea' and 'looks like a bad idea.' So you want most people to think it's a bad idea and thus not compete with you until you get giant. But for it to secretly be good.

In this quote, Sam Altman, entrepreneur and former president of Y Combinator, explains a key insight into what makes a great startup idea. He refers to a “famous observation” that the best ideas often live at the intersection of two qualities: they are genuinely good ideas, but they look like bad ideas to most people. This paradox is what makes them powerful—because they're counterintuitive, they are often overlooked or dismissed by others, giving the founder a unique advantage.

Altman emphasizes that you actually want others to underestimate your idea. If most people think it’s a bad idea, they won’t try to compete, giving you the freedom and space to grow and improve without immediate pressure. However, the idea must be secretly good—it needs to have hidden value or disruptive potential that only becomes obvious after it's been developed. This approach requires vision, conviction, and the ability to see opportunity where others see failure.

This philosophy reflects Altman’s experience working with early-stage startups, many of which succeeded because their ideas seemed too niche, weird, or unscalable at first. Companies like Airbnb and Dropbox are often cited as examples—they looked like bad ideas initially, but proved revolutionary once they gained traction. Altman's quote encourages founders to trust their instincts even when others don’t see the potential.

The origin of this quote comes from Altman’s writings and talks on startup strategy, particularly through his work at Y Combinator, where he helped shape the modern approach to tech entrepreneurship. His advice draws from observing patterns across hundreds of startups, emphasizing that being early, misunderstood, and relentlessly persistent can be a powerful combination for long-term success.