5 ms·

YC doesn't seem to invest in higher risk startups anymore (except exciting moonshots). They used to invest like an accelerator but recently they are more like a

YC doesn't seem to invest in higher risk startups anymore (except exciting moonshots). They used to invest like an accelerator but recently they are more like a VC (More traction required before they even consider you) AND also has to be billion dollar target market. If you want bootstrap money you are better off applying to local accelerators or incubators. That said, with their signalling , 7% for $150k is a generous offer and not at all un-favourable.

ryanwaggoner 8y ago
Hmm, that’s not my impression. I’m constantly seeing YC startups “in the wild” that seem pretty damn niche. Maybe they did pitch with some path to a billion dollars but it’s not at all clear how that would ever realistically happen.
- ganeshkrishnan 8y ago
  They used to be early stage. Our startup has records of some sort for being rejected most times by YC and I always chat with those who made it and those who didn't. Traction was where all the action was. That's what most VC's care too (apart from other VCs investing). All the vision, values bullshit is just fluff talk from them.
DamnYuppie 8y ago
I don't agree with the notion that you need lots of traction to get into YC. I was part of the W18 batch and I can only think of a few of the 100+ companies who had revenue streams. Some had $1M+ Annual Re-occurring Revenue but the vast majority were under $5k Monthly Re-occurring Revenue most were at $0. It was fun to watch many of them really ratchet up their sales in the 3 months of the program. As I recall there were quite few in the bio/pharam/med space and they were mostly dependent upon grants at the time of joining YC and were still years away from true profitability. My exposure and knowledge of all local accelerators/incubators is obviously limited. Yet I have not seen or head of any local accelerators or incubators that have anything that comes close to YC's demo day. It is a value unto its own and quite the spectacle.
- colmvp 8y ago
  I tend to agree. A company I was associated with was in YC a while back and there were a number of companies that had zero traction at the time. I truly believe that they put a put a good deal of weight on the talent of the group, so even teams that didn't have a fully fleshed out idea could be accepted. Of course, having a good team and product with fit is better.
- andy_ppp 8y ago
  I think if you don't have the secret sauce that YC are after then you don't get in so it can seem like they only want people with complete businesses to apply. Thinking about it the secret sauce is probably something like: 1) Apply every time 2) Never give up with the application (like I've done on Paypip) 3) Make your application super awesome and include every detail of your vision to get people excited about it. Probably of those number three is the most important. More important than revenue/users. I'm still amazed and upset when I see businesses do YC have ZERO users and then raise $4.7m with just a few pretty pictures on their website... What is it they are peddling to be able to get away with ignoring the most central tennent of YC?
  - ryanwaggoner 8y ago
    Team + pitch, what else?
  - ganeshkrishnan 8y ago
    did you give up on paypip or did you get into YC via paypip?

ryanwaggoner 8y ago

Hmm, that’s not my impression. I’m constantly seeing YC startups “in the wild” that seem pretty damn niche. Maybe they did pitch with some path to a billion dollars but it’s not at all clear how that would ever realistically happen.

ganeshkrishnan 8y ago
They used to be early stage. Our startup has records of some sort for being rejected most times by YC and I always chat with those who made it and those who didn't. Traction was where all the action was. That's what most VC's care too (apart from other VCs investing). All the vision, values bullshit is just fluff talk from them.

DamnYuppie 8y ago

I don't agree with the notion that you need lots of traction to get into YC. I was part of the W18 batch and I can only think of a few of the 100+ companies who had revenue streams. Some had $1M+ Annual Re-occurring Revenue but the vast majority were under $5k Monthly Re-occurring Revenue most were at $0. It was fun to watch many of them really ratchet up their sales in the 3 months of the program. As I recall there were quite few in the bio/pharam/med space and they were mostly dependent upon grants at the time of joining YC and were still years away from true profitability. My exposure and knowledge of all local accelerators/incubators is obviously limited. Yet I have not seen or head of any local accelerators or incubators that have anything that comes close to YC's demo day. It is a value unto its own and quite the spectacle.

colmvp 8y ago
I tend to agree. A company I was associated with was in YC a while back and there were a number of companies that had zero traction at the time. I truly believe that they put a put a good deal of weight on the talent of the group, so even teams that didn't have a fully fleshed out idea could be accepted. Of course, having a good team and product with fit is better.
andy_ppp 8y ago
I think if you don't have the secret sauce that YC are after then you don't get in so it can seem like they only want people with complete businesses to apply. Thinking about it the secret sauce is probably something like: 1) Apply every time 2) Never give up with the application (like I've done on Paypip) 3) Make your application super awesome and include every detail of your vision to get people excited about it. Probably of those number three is the most important. More important than revenue/users. I'm still amazed and upset when I see businesses do YC have ZERO users and then raise $4.7m with just a few pretty pictures on their website... What is it they are peddling to be able to get away with ignoring the most central tennent of YC?
- ryanwaggoner 8y ago
  Team + pitch, what else?
- ganeshkrishnan 8y ago
  did you give up on paypip or did you get into YC via paypip?