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We have a much higher threshold for startups that have already been through an "accelerator" program. Mainly because we expect them to have thereby been acceler

by pg 13y ago

We have a much higher threshold for startups that have already been through an "accelerator" program. Mainly because we expect them to have thereby been accelerated; if they're not doing well, we worry they might be unacceleratable. It's also a problem that such startups will be twice as diluted at Demo Day, which decreases their fundraising options. I can think of two startups we've funded that had been through things calling themselves "accelerators" before YC.

stringbeans 13y ago
That provides a lot of clarity. Thanks PG :)
wololo_ 13y ago
Does that also apply to angel/pre-seed/seed funded teams ?
- pg 13y ago
  No, not it's not usually a problem if a company has merely raised some money, unless they've sold so much of the company that we know it will deter post Demo Day investors.
  - ritchiea 13y ago
    How much of your company would you have to sell for it to become a deterrent to demo day investors?
    - wololo_ 13y ago
      I'm guessing 30%+ for an early stage company. (Usually investors out of the valley would take that much in it's first round)
      - rbchv 13y ago
        Wow that seems like a lot for angel funding. Even 20% seems like a lot for an angel round.
avalaunch 13y ago
Based on the way that's worded, is it safe to assume you hold a low opinion of the programs those two startups (FlightCar and another?) went through prior to being accepted into YC? If so what do you think was lacking in those two "accelerators"?
- pg 13y ago
  I don't know much about either of them. There are so many of these things now. It seems like every few days I hear about another one I hadn't heard of. And I don't really know what goes on inside of any of them. Except Imagine K-12, which was started by friends of mine with my encouragement, and one of whose founders, Geoff Ralston, is also a partner at YC. IK12 is definitely good, and we recommend education startups apply to them.
  - HorizonXP 13y ago
    Heh, I have an Airbnb guest staying with me tonight that's in Imagine K-12 right now. I should drop by and see what it's about, considering it's 10 minute walk from my place! I'm curious what makes them different from the others?
    - woah 13y ago
      I'm guessing that the difference is that he trusts them?
    - pg 13y ago
      We essentially gave IK12 our source code. When Tim and Geoff were starting it, we told them everything about how YC works, and even brought them in to watch how we did things.
      - hotpockets 13y ago
        Yo pg, can you swing me some of that source code? I been thinking about accelerating it up, and me and my bro hungry pete are what you'd call pretty cool dudes. Hungry pete can attest! Get back. -Peace-
webwright 13y ago
AirBnB took quite a while before they started growing. If they had done YC in the first month of their existence, do you think that growth would've happened A LOT sooner? I think it would've helped considerably but I think some startups just need to "age" for a while. Ben / Pinterest had a similar long/flat growth line before they started to take off. On the other hand, maybe those "taking off" moments were a result of advice from smart folks (like YC).
- pg 13y ago
  Yes. All startups evolve, but most that have evolved slowly could have evolved faster.
ig1 13y ago
IIRC Prizeo and Kivo both went through @EntreFirst and Vayable went through @500Startups prior to YC.
bambax 13y ago
The quotes around "accelerator" makes the comment inconsistent. If other "accelerators" are not really "accelerators", then it shouldn't matter that a startup that went through them hasn't accelerated much; it should certainly not mean that the startup is unacceleratable. If you try to learn to read with someone who doesn't know how to read herself, and you fail, it doesn't mean you're forever incapable of reading.
- stringbeans 13y ago
  this is how we felt as well :S

by pg 13y ago

stringbeans 13y ago

That provides a lot of clarity. Thanks PG :)

wololo_ 13y ago

Does that also apply to angel/pre-seed/seed funded teams ?

pg 13y ago
No, not it's not usually a problem if a company has merely raised some money, unless they've sold so much of the company that we know it will deter post Demo Day investors.
- ritchiea 13y ago
  How much of your company would you have to sell for it to become a deterrent to demo day investors?
  - wololo_ 13y ago
    I'm guessing 30%+ for an early stage company. (Usually investors out of the valley would take that much in it's first round)
    - rbchv 13y ago
      Wow that seems like a lot for angel funding. Even 20% seems like a lot for an angel round.

avalaunch 13y ago

Based on the way that's worded, is it safe to assume you hold a low opinion of the programs those two startups (FlightCar and another?) went through prior to being accepted into YC? If so what do you think was lacking in those two "accelerators"?

pg 13y ago
I don't know much about either of them. There are so many of these things now. It seems like every few days I hear about another one I hadn't heard of. And I don't really know what goes on inside of any of them. Except Imagine K-12, which was started by friends of mine with my encouragement, and one of whose founders, Geoff Ralston, is also a partner at YC. IK12 is definitely good, and we recommend education startups apply to them.
- HorizonXP 13y ago
  Heh, I have an Airbnb guest staying with me tonight that's in Imagine K-12 right now. I should drop by and see what it's about, considering it's 10 minute walk from my place! I'm curious what makes them different from the others?
  - woah 13y ago
    I'm guessing that the difference is that he trusts them?
  - pg 13y ago
    We essentially gave IK12 our source code. When Tim and Geoff were starting it, we told them everything about how YC works, and even brought them in to watch how we did things.
    - hotpockets 13y ago
      Yo pg, can you swing me some of that source code? I been thinking about accelerating it up, and me and my bro hungry pete are what you'd call pretty cool dudes. Hungry pete can attest! Get back. -Peace-

webwright 13y ago

AirBnB took quite a while before they started growing. If they had done YC in the first month of their existence, do you think that growth would've happened A LOT sooner? I think it would've helped considerably but I think some startups just need to "age" for a while. Ben / Pinterest had a similar long/flat growth line before they started to take off. On the other hand, maybe those "taking off" moments were a result of advice from smart folks (like YC).

pg 13y ago
Yes. All startups evolve, but most that have evolved slowly could have evolved faster.

ig1 13y ago

IIRC Prizeo and Kivo both went through @EntreFirst and Vayable went through @500Startups prior to YC.

bambax 13y ago

The quotes around "accelerator" makes the comment inconsistent. If other "accelerators" are not really "accelerators", then it shouldn't matter that a startup that went through them hasn't accelerated much; it should certainly not mean that the startup is unacceleratable. If you try to learn to read with someone who doesn't know how to read herself, and you fail, it doesn't mean you're forever incapable of reading.

stringbeans 13y ago
this is how we felt as well :S