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It would be interesting if YC ever rejected someone with 10% growth over 8 weeks or what the rejection rate at that growth is, because I think it's quite a stro
by wellboy 13y ago
It would be interesting if YC ever rejected someone with 10% growth over 8 weeks or what the rejection rate at that growth is, because I think it's quite a strong criterion? (given that it's not a totally unscalable business)
- opendais 13y agoWell, let us say you start out with a pool of 10 people. Week 1 - 11 [10%] Week 2 - 13 [>10%] Week 3 - 15 [>10%] Week 4 - 17 [>10%] Week 5 - 20 [>10%] Week 6 - 23 [>10%] Week 7 - 26 [>10%] Week 8 - 29 [>10%] Would a growth rate of 2-3 paying accounts at a SaaS price point of $10/month really affect a decision? Sure, if your MRR grew by 10% and your starting base was $10,000 I could see a reasonable extrapolation from that. But if your starting base is 10 accounts @ $10/month [$100 MRR], you might die out once you realize your niche is only 1000 accounts deep. So I'd say 'growth' is probably the equivalent of a +1, criteria met, rather than an overpowering criterion that is weighted higher than any other. That is just my guess tho.
- dfabulich 13y agoThis is actually a totally legit target for investment on Demo Day. If your product costs $30+/user/month, dozens of users could mean that you're ramen profitable at the end of two months, a major milestone. If you can sustain that 10% growth for two months of YC, you'll have enough money to hire an employee by bootstrapping alone, which means that you're able to turn down investors, which makes you more valuable. You shouldn't ask for (and shouldn't take) millions of dollars in investment at that point, but you're certainly lined up for hundreds of thousands of dollars; keep up that 10% growth rate a few more months and you will be ready for VC.