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There's always other places to turn to.
For all of us that were rejected, remember there's always other places to turn to. Plus, 6% is awfully steep for $15-20K. Google gave up only 12% for millions in investments.
- veritas 19y agoHow insane would it be if you got a YC rejection letter, but a Sequoia interview... :D
- GammaStats 19y agoIt seems to me that YC is more interested in making quick in/out investments and not in real long term projects. Long term projects belong in the hands of those that are willing to go in for the long haul. I am not too disappointed that our application was rejected on those grounds. Really, who wants to give up so much for a few dollars and a chance to give a presentation?
- mattmaroon 19y agoThat's not exactly true. They remain involved with you indefinitely. They have a vested interest in your success, it would be silly of them not to. Their strategy (lot of small investments) does take depend on economies of scale, so it's not as hands on as Sequoias, which depends a few big investments. They obviously won't spend as much time with you as a VC would because of that, but the time they do spend is proportionately more valuable. You give up a small % of the company, and it's a lot more than a presentation. There are also advice, contacts, and credibility.
- veritas 19y agoFair point. YC exists not to be on your board or help run the business, but to help you get to the people that will do those things. Which, I consider, to be a valuable service. Have you had any contact with Sequoia? If so, what are they like?
- GammaStats 19y agoWe have not made contact yet. However all of our research suggests that they are an easy bunch to work with. It is in their best interest not to turn people away on the basis of no-intro. The founders of many of their start-ups contacted them out of the blue with their plan and expressed desire to work with them.
- nanijoe 19y ago"I am not too disappointed that our application was rejected on those grounds. Really, who wants to give up so much for a few dollars and a chance to give a presentation? " This is of course tongue-in-cheek right?
- GammaStats 19y agoActually no, One of the primary factors that makes me say this is that Google got over $12million for only a 10% stake in the company from Sequoia Capital. I learned about this after we had already applied. If PG would have asked us for an interview and invited us, I (personally) would have rejected the offer if their stake was to be more than say 2%. YC is asking for a huge chunk for slight benefits. Its not tongue-in-cheek, its strictly good business.
- danielha 19y ago> Really, who wants to give up so much for a few dollars and a chance to give a presentation? You do. ;)
- danielzarick 18y agoCould not have been said more succinctly, Daniel.
- GammaStats 19y agoBy the way, these guys don't require a formal introduction. So networking is not too important too them. They profess that they are pro-underdog. So take a look! But don't ask them for the money that we will be getting from them or we will send you nasty emails every Thanksgiving!
- rms 19y agoI've definitely seen them say that they read every submission: http://sequoiacap.com/ideas/ http://sequoiacap.com/ideas/ These guys are friendly too: http://www.tandementrepreneurs.com/ http://www.tandementrepreneurs.com/
- mattmaroon 19y agoLol. They might read every submission, but only a very tiny fraction of their deals come from that. Maybe one or two percent tops. No matter what they say, an introduction is the only real shot of success.
- rms 19y agoRight, but mainly because someone that can't get an introduction is very unlikely to be what they want for their portfolio.
- mattmaroon 19y agoI think its more because old habits, like Silicon Valley's gentleman's club, die hard. There are tons of excellent hackers who couldn't get an introduction, including a large number of the Y C companies that went on to get VC funding.
- rms 19y agoDid anyone that couldn't get an introduction try cold submitting to Sequoia?