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Ask HN: Existing convertible note advantage or obstacle for YC?

6 points by some1else 11y ago

We applied for the previous YC batch, but didn't get in. Now we have an opportunity to receive a $75000 convertible note loan from a national trust. However, we'd like to apply for the W16 batch, and we're wondering whether this increases or decreases our chances of being accepted? Thanks

alain94040 11y ago
Increases. It shows the beginning of some external validation: it's not just you who thinks you have a great idea, others agree with their money. It's not as good as having customers, but it's still a signal.
rajacombinator 11y ago
I'm not affiliated with YC so I can only speculate. But I imagine, all things being equal, that the investment would increase your chances of getting in, provided the terms and valuation are not substantially worse than usual. It's a vote of confidence, which has value. (Although substantially less since it's a govt fund.) You really shouldn't be basing important business decisions like this on their impact on your snowball's chance of getting into the highly competitive YC though. Unless you were really close to getting in last time. (Like, you went and interviewed and they said that you were really close.) The fact that you are bodes poorly for your chances.
- some1else 11y ago
  I'd like to clarify that we try not to make business decisions based on speculation. Just wanted to reassure myself that we're not wasting time filling out the application. Thanks for the reply.
  - pavornyoh 11y ago
    I think filling out the application again is time well spent. A 100 people here can respond and say, yes it helps you get in validating and pumping you up only to be rejected again then what?. If you are keen on getting in, have at it again by filling it out and see what happens. Also, getting in the 2nd time will depend on how well you answer why/what caused you to be rejected in the first place.Drew Houston was rejected the first time and got in the 2nd time..:)
    - some1else 11y ago
      We occasionally revisit the interview prep tool (http://ycinterview.com/ http://ycinterview.com/), and that's definitely 15 minutes well spent. Communicating these things in writing takes longer by default though, and can take as much as you're willing to spend on it. It's hard to notice that you reached the point of diminishing returns.
ig1 11y ago
Unlikely to make a difference unless the money is from a brand name investor/yc-connected investor.