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YC used to be for people who investors wouldn’t normally take a chance on…and imo, it still is. If you have a FAANG attached to your name with multiple years of

by rhtgrg 4y ago

YC used to be for people who investors wouldn’t normally take a chance on…and imo, it still is. If you have a FAANG attached to your name with multiple years of experience, you can probably find better deals elsewhere. YC has done a relatively good job of scaling themselves, but it has never been a “one size fits all” funding solution, and if you are a founder you’d be wise to consider your options carefully. That being said, removing the relocation requirement was a big mistake — it was partially a forced move, but it’s not at all surprising that you get a significantly degraded founder experience if you are not in SF.

opportune 4y ago
I have FAANG attached to my name with multiple years of experience, where else would you recommend as a replacement or competitor to YC? I am aware of angel investors’ existence but looking for anything besides that
- rhtgrg 4y ago
  It depends on what your goals are and what your business needs. I would recommend reaching out to your local angel investors —- even if you don’t plan to fundraise with them, they usually have an avenue for you to get in touch directly with investors —- and they can interview you about your startup and dispense free advice that is much more informed than what I can give you here. Assuming you are at a very nascent stage with your startup, there are still all sorts of options out there, including but not limited to —- Kickstarter, loans, raising from friends and family, running on a shoestring budget offshore, raising convertible notes from local investors (you probably have some of these people in your extended network already), selling preorders, self-funding (e.g. via collateral loans), grants, incubators (other than YC), etc. There are a lot of variables, and several options to choose from depending on your particulars.
  - opportune 4y ago
    Thanks! Yeah I guess to be more specific, what meant to ask is: besides YC and angel investors, what will help me as much or better than YC? Particularly in the context of the person I was replying to saying that people with my background can potentially find better deals than with YC (which I guess I assumed meant in terms of VC - you’re right that it probably helps with alternative funding routes too). Like, what better incubators or accelerators will be looking at 5+ years at FAANG as a shoe-in (honestly, I’m a bit skeptical that’s even a shoe in at at YC, but what do I know) and give me better terms and/or more support? I know Sequioa has a small incubator now and I’ve actually talked to them, but I assume there are some good ones out there that would be hard to learn about except through word of mouth.
    - rhtgrg 4y ago
      You might be able to find some of those, but you probably don't want to work with incubators or accelerators that consider anybody -- let alone such a large absolute number of people as "ex-FAANG" -- a "shoo-in". Just think about the second order consequences of that. And yes, when it comes to startups (i.e. business) and funding, word of mouth is very powerful and not to be underestimated.
majani 4y ago
> YC used to be for people who investors wouldn’t normally take a chance on…and imo, it still is. It absolutely is not. The recently released Founders Directory[1] shows that YC is practically a big tech company now. Most alumni are from FAANG or Ivy League. This was an inevitable result when YC became the most prestigious accelerator in the West [1] https://www.ycombinator.com/companies/founders https://www.ycombinator.com/companies/founders
- rhtgrg 4y ago
  That's why I said in my opinion. Which is to say, in my opinion the opportunity YC presents is more compelling for non-FAANG founders. That doesn't necessarily mean anything for what the demographics actually end up being. I'm sure at least some of those FAANG founders are favoring prestige over a better financial deal.

by rhtgrg 4y ago

opportune 4y ago

I have FAANG attached to my name with multiple years of experience, where else would you recommend as a replacement or competitor to YC? I am aware of angel investors’ existence but looking for anything besides that

rhtgrg 4y ago
It depends on what your goals are and what your business needs. I would recommend reaching out to your local angel investors —- even if you don’t plan to fundraise with them, they usually have an avenue for you to get in touch directly with investors —- and they can interview you about your startup and dispense free advice that is much more informed than what I can give you here. Assuming you are at a very nascent stage with your startup, there are still all sorts of options out there, including but not limited to —- Kickstarter, loans, raising from friends and family, running on a shoestring budget offshore, raising convertible notes from local investors (you probably have some of these people in your extended network already), selling preorders, self-funding (e.g. via collateral loans), grants, incubators (other than YC), etc. There are a lot of variables, and several options to choose from depending on your particulars.
- opportune 4y ago
  Thanks! Yeah I guess to be more specific, what meant to ask is: besides YC and angel investors, what will help me as much or better than YC? Particularly in the context of the person I was replying to saying that people with my background can potentially find better deals than with YC (which I guess I assumed meant in terms of VC - you’re right that it probably helps with alternative funding routes too). Like, what better incubators or accelerators will be looking at 5+ years at FAANG as a shoe-in (honestly, I’m a bit skeptical that’s even a shoe in at at YC, but what do I know) and give me better terms and/or more support? I know Sequioa has a small incubator now and I’ve actually talked to them, but I assume there are some good ones out there that would be hard to learn about except through word of mouth.
  - rhtgrg 4y ago
    You might be able to find some of those, but you probably don't want to work with incubators or accelerators that consider anybody -- let alone such a large absolute number of people as "ex-FAANG" -- a "shoo-in". Just think about the second order consequences of that. And yes, when it comes to startups (i.e. business) and funding, word of mouth is very powerful and not to be underestimated.

majani 4y ago

> YC used to be for people who investors wouldn’t normally take a chance on…and imo, it still is. It absolutely is not. The recently released Founders Directory[1] shows that YC is practically a big tech company now. Most alumni are from FAANG or Ivy League. This was an inevitable result when YC became the most prestigious accelerator in the West [1] https://www.ycombinator.com/companies/founders https://www.ycombinator.com/companies/founders

rhtgrg 4y ago
That's why I said in my opinion. Which is to say, in my opinion the opportunity YC presents is more compelling for non-FAANG founders. That doesn't necessarily mean anything for what the demographics actually end up being. I'm sure at least some of those FAANG founders are favoring prestige over a better financial deal.