7 ms·

The Y Combinator Experience

63 points by RyanAmos 17y ago

jeff18 17y ago
I am really envious of the "Y Combinator Experience". Is there any way to get introductions to the various connections, go to the mentioned startup meetups (we are located in San Francisco), and get some friendly advice, without giving up equity? I don't want to give up 5-10% of my company and the ~$10k would not make a difference, however I would love to be more involved in the community, and am particularly jealous of this paragraph: "When you’re accepted into Y Combinator you are part of a community of 172 startups, that take every opportunity to help one another. Being part of this community is invaluable. Six months after our session of Y Combinator ended, the founders of S09 regularly meet, and I would consider us a close group of friends." Is there any way for a non-YC startup to become an honorary member of this group?
- prawn 17y ago
  Alternatively, what might be some key ways of creating that camaraderie and supportive network outside of the YC experience? I imagine a sense of achievement or difficulty (in it being challenging to gain entrance) might take a group beyond "regular meet-up" status?
- coryl 17y ago
  I really don't think theres any way to replicate the Y Combinator experience without being apart of YC. If you want introductions and advice, you need an angel with a background similar to PG (made money in tech, invests in startups). The reason the alumni are so close is because they all go through something very hard together. I don't think YC was planning for such a supportive alumni network, rather, its just the magic that follows when something special is created.
- baguasquirrel 17y ago
  I couldn't give a damn about giving up equity. If they didn't have a stake in you, then there wouldn't be as much motivation for them to make you succeed, would there? Founders need to be less greedy about this equity thing. It's more about whether your chances of success are amplified enough by what you give up, i.e. Expected Value. http://en.wikipedia.org/wiki/Expected_value http://en.wikipedia.org/wiki/Expected_value If you don't want to give up equity for that little of an amount, and you've got something, then go pitch an angel investor directly. YCombinator is not the end all be all. I think it's important for newbs like us to get our feet wet so we have an idea of how much (or how little) bargaining power we have, and where we stack up against other entrepreneurs. Finally, everything in this world is negotiable. You could apply and work out the numbers with them, and I don't think there's a requirement to accept if you're accepted (correct me if I'm wrong). What I would envy is not getting into that sort of club. For a moment (however small that moment is), it makes you wonder how you could ever possibly make up for not having that advantage (that being said, lamenting about such a thing is unbecoming of an entrepreneur, and the motto of "be endlessly resourceful").
- tolmasky 17y ago
  I really don't understand why people get so hung up on the 5-10% thing. This is seriously a bargain, to the point where all the YC founders are arguably actually ripping pg off. He only gets 5-10% of your current company, while you get his help, a ton of connections, and the YC networks and friendships for life
  - pvg 17y ago
    Oh please. It's a big chunk of equity. It's not a bargain and nobody is ripping pg off. It's great that pg is helping startups on terms that both he and the startups that accept the investment understand. Portraying it as charity or martyrdom is absurd, though. YC themselves don't.
    - tolmasky 17y ago
      I never said it was charity, I simply said that in my opinion the terms are better for the founders. I don't think there's a single YC founder that would disagree with me. And I'm sure there isn't a single successful YC founder that would disagree with me (which is the theoretical point where the equity would come back to bite you). If your company is already doing amazing or you're already some sort of super hot shot, then of course its not a good deal. Jeff Bezos does not need to go through the YC program. But I don't see a bunch of Balmers and Bezos' complaining about the YC terms, I see a bunch of people that need precisely what YC provides.
      - pvg 17y ago
        I simply said that in my opinion the terms are better for the founders Right, I simply said that opinion is absurd and flies in the face of the very idea of running a business like YC. And it is a business, right, we agree on that? And I'm sure there isn't a single successful YC founder that would disagree Why on earth would a successful YC founder disagree? They've been successful. This is the definition of selection bias.
        tolmasky 17y ago
- rantfoil 17y ago
  5-10% is negligible in the face of a 10x or 100x multiple on your potential.
  - jeff18 17y ago
    If I could multiply my startup by 100x, I could retire in a couple of months. ;)
- dannyr 17y ago
  So you want to get the benefits of a YC startup without giving anything in return?
  - jeff18 17y ago
    Not exactly. In hindsight, maybe my post was offensive, but I did not intend it to come off that way. I am not looking for the full YC package (I'm not sure if my startup is even eligible to apply). What I meant was specifically - I would like to hang out with like-minded, serious startup folk in San Francisco. - I would like to meet a seasoned entrepreneur and have a chat about my plans. - I would like an introduction to a few investors to bounce some ideas off of. For those three things, I am not willing to give up 5-10% of my startup, which is profitable, and relatively mature compared to YC investees. Additionally, I am sure a full-fledged YC investment offers far more than those three points. ;)
    - dannyr 17y ago
      There are events in San Francisco almost everyday where you can meet startup folks. Not to downplay YC but the YC community is just a small part of the startup community in the Bay Area. With regards to meeting seasoned entrepreneurs, just go to events and you'll meet them. Most of them are very generous of their time because they just want to help fellow entrepreneurs. Just remember though especially with meeting investors that you are one of thousands in the Bay Area that wants a face-time with them. I haven't really talked to investors. I ask myself why I am worth their time. In my opinion, I haven't done enough to warrant an audience with them. Well, not yet. ;-)
      - jeff18 17y ago
        The only ones I know of are Startup at Berkeley and various video game developer meetups. WWDC and GDC are the only two conferences I currently go to. I'd be grateful for any specific recommendations! :)
        dannyr 17y ago
- DaniFong 17y ago
  Sort of. The YC founders are a pretty cohesive group, so if you get into their circle you get a lot of the benefit. This goes for SV/SF based startup founders generally, too. Since it's such a closed group, if you make friends with people at one meet up you'll end up expanding your circle to several. There are some open meetups (e.g. Hackers and Founders) and also meetups on technologies (e.g. SF Javascript).
Roridge 17y ago
I too am jealous of the Y Combinator Experience. To rectify this I have submitted my application. I don't have a degree from MIT either, and this blog post has helped me remove some of my concerns. Thanks Ryan.

63 points by RyanAmos 17y ago

I am really envious of the "Y Combinator Experience". Is there any way to get introductions to the various connections, go to the mentioned startup meetups (we are located in San Francisco), and get some friendly advice, without giving up equity? I don't want to give up 5-10% of my company and the ~$10k would not make a difference, however I would love to be more involved in the community, and am particularly jealous of this paragraph: "When you’re accepted into Y Combinator you are part of a community of 172 startups, that take every opportunity to help one another. Being part of this community is invaluable. Six months after our session of Y Combinator ended, the founders of S09 regularly meet, and I would consider us a close group of friends." Is there any way for a non-YC startup to become an honorary member of this group?

prawn 17y ago
Alternatively, what might be some key ways of creating that camaraderie and supportive network outside of the YC experience? I imagine a sense of achievement or difficulty (in it being challenging to gain entrance) might take a group beyond "regular meet-up" status?
coryl 17y ago
I really don't think theres any way to replicate the Y Combinator experience without being apart of YC. If you want introductions and advice, you need an angel with a background similar to PG (made money in tech, invests in startups). The reason the alumni are so close is because they all go through something very hard together. I don't think YC was planning for such a supportive alumni network, rather, its just the magic that follows when something special is created.
baguasquirrel 17y ago
I couldn't give a damn about giving up equity. If they didn't have a stake in you, then there wouldn't be as much motivation for them to make you succeed, would there? Founders need to be less greedy about this equity thing. It's more about whether your chances of success are amplified enough by what you give up, i.e. Expected Value. http://en.wikipedia.org/wiki/Expected_value http://en.wikipedia.org/wiki/Expected_value If you don't want to give up equity for that little of an amount, and you've got something, then go pitch an angel investor directly. YCombinator is not the end all be all. I think it's important for newbs like us to get our feet wet so we have an idea of how much (or how little) bargaining power we have, and where we stack up against other entrepreneurs. Finally, everything in this world is negotiable. You could apply and work out the numbers with them, and I don't think there's a requirement to accept if you're accepted (correct me if I'm wrong). What I would envy is not getting into that sort of club. For a moment (however small that moment is), it makes you wonder how you could ever possibly make up for not having that advantage (that being said, lamenting about such a thing is unbecoming of an entrepreneur, and the motto of "be endlessly resourceful").
tolmasky 17y ago
I really don't understand why people get so hung up on the 5-10% thing. This is seriously a bargain, to the point where all the YC founders are arguably actually ripping pg off. He only gets 5-10% of your current company, while you get his help, a ton of connections, and the YC networks and friendships for life
- pvg 17y ago
  Oh please. It's a big chunk of equity. It's not a bargain and nobody is ripping pg off. It's great that pg is helping startups on terms that both he and the startups that accept the investment understand. Portraying it as charity or martyrdom is absurd, though. YC themselves don't.
  - tolmasky 17y ago
    I never said it was charity, I simply said that in my opinion the terms are better for the founders. I don't think there's a single YC founder that would disagree with me. And I'm sure there isn't a single successful YC founder that would disagree with me (which is the theoretical point where the equity would come back to bite you). If your company is already doing amazing or you're already some sort of super hot shot, then of course its not a good deal. Jeff Bezos does not need to go through the YC program. But I don't see a bunch of Balmers and Bezos' complaining about the YC terms, I see a bunch of people that need precisely what YC provides.
    - pvg 17y ago
      I simply said that in my opinion the terms are better for the founders Right, I simply said that opinion is absurd and flies in the face of the very idea of running a business like YC. And it is a business, right, we agree on that? And I'm sure there isn't a single successful YC founder that would disagree Why on earth would a successful YC founder disagree? They've been successful. This is the definition of selection bias.
      - tolmasky 17y ago
rantfoil 17y ago
5-10% is negligible in the face of a 10x or 100x multiple on your potential.
- jeff18 17y ago
  If I could multiply my startup by 100x, I could retire in a couple of months. ;)
dannyr 17y ago
So you want to get the benefits of a YC startup without giving anything in return?
- jeff18 17y ago
  Not exactly. In hindsight, maybe my post was offensive, but I did not intend it to come off that way. I am not looking for the full YC package (I'm not sure if my startup is even eligible to apply). What I meant was specifically - I would like to hang out with like-minded, serious startup folk in San Francisco. - I would like to meet a seasoned entrepreneur and have a chat about my plans. - I would like an introduction to a few investors to bounce some ideas off of. For those three things, I am not willing to give up 5-10% of my startup, which is profitable, and relatively mature compared to YC investees. Additionally, I am sure a full-fledged YC investment offers far more than those three points. ;)
  - dannyr 17y ago
    There are events in San Francisco almost everyday where you can meet startup folks. Not to downplay YC but the YC community is just a small part of the startup community in the Bay Area. With regards to meeting seasoned entrepreneurs, just go to events and you'll meet them. Most of them are very generous of their time because they just want to help fellow entrepreneurs. Just remember though especially with meeting investors that you are one of thousands in the Bay Area that wants a face-time with them. I haven't really talked to investors. I ask myself why I am worth their time. In my opinion, I haven't done enough to warrant an audience with them. Well, not yet. ;-)
    - jeff18 17y ago
      The only ones I know of are Startup at Berkeley and various video game developer meetups. WWDC and GDC are the only two conferences I currently go to. I'd be grateful for any specific recommendations! :)
      - dannyr 17y ago
DaniFong 17y ago
Sort of. The YC founders are a pretty cohesive group, so if you get into their circle you get a lot of the benefit. This goes for SV/SF based startup founders generally, too. Since it's such a closed group, if you make friends with people at one meet up you'll end up expanding your circle to several. There are some open meetups (e.g. Hackers and Founders) and also meetups on technologies (e.g. SF Javascript).

Roridge 17y ago

I too am jealous of the Y Combinator Experience. To rectify this I have submitted my application. I don't have a degree from MIT either, and this blog post has helped me remove some of my concerns. Thanks Ryan.