I'm apply last year (W11) but was rejected. Now I know why - not because I'm russian, just my idea was a totally shit. Thanks PG, that you reject me. I got many ideas since last year - Startups Franchise, Help Button to any smartphones and many other, I invent new XML-format RSS+ and tons of many ohers great things. Now I got an idea, that 85% of G+ techbloggers say 'this is realy cool' because this is really cool, not because I'm think so. This is a startup, that can grow fast and make good cashflow. September, 15 Steve Blank come to Moscow and I'm pitch him with it. If him also say 'cool' I'm apply. I have a great cofounder - IP lawyer from New Delhi. We can do it, PG.
If you're still on the fence about whether or not you should reply, I suggest reading "What Happens at YC": http://ycombinator.com/atyc.html - that's the essay that convinced us to apply with Lanyrd, and it was everything the essay promised and more.
The best summary I have heard of whether or not to apply is:
"If you think you might need YC, you need it. If you think you might not need YC, you need it. If you are ABSOLUTELY SURE you don't need YC, you probably still do, but maybe not."
I'm not really comfortable with the word "need" there since obviously most successful companies don't go through YC. It's more like, "What are the situations where going through YC is a net minus?" and there are very few.
YC is a great boost in the right direction, but most people that apply won't be accepted. What should they do? Well, if they were serious in the first place, they should start their company anyway. People who want to start companies should start companies; people who just want to get into YC (and assume that they'll then be on the gilded path) shouldn't do either.
> "What are the situations where going through YC is a net minus?" and there are very few.
Last I checked, doing YC requires one to live in the USA, a place that has been rapidly increasing in insanity for the last ten years or so. That's a net loss for anyone who values their basic freedoms.
Then again, some value customers, cash flow, and shareholder value more than their own personal liberties, so the "net loss" calculation will vary from individual to individual -- but note well that it will probably only become more likely as the US becomes worse.
Plot the points from the PATRIOT act to the TSA harassment and groping and throw _that_ graph in your deck.
It's particularly ironic that you say that replying to a YC founder that lives in the same city as you.
YC has never required you to live in the US beyond the 3 months that the program runs. They strongly recommend it, but there are a handful of YC companies headquartered elsewhere (with the largest contingent in and around London).
1) That's enough to ruin the Foreign Earned Income Exclusion (presuming US citizenship) for 2012. 35 days/year is all we get.
2) Short of bussing down to Mexico and flying home from there, how would one avoid sexual assault at the hands of the US government after the program ends?
3) Whoever solves this telepresence issue for problems like this once and for all will make a mint.
Hiya Sneak. As somebody with a lot of amateur experience regarding the FEIE, the Physical Presence Test is just there to provide a quick-to-adjudicate safe harbor for filers. You also have access to the Bonafide Residence Test, which a) takes zero work to apply for, b) is rarely audited for folks like us, and c) would be trivially sustained on audit if you looked like you lived abroad. Factors strongly breaking in favor of you include that YC is for a defined fairly short duration, that your living conditions in San Fran scream "temporary accomodations during work, not permanent residence", that you maintain your foreign residence in state with intent to return, etc.
I routinely spend two months a year in the US, and have never had a problem with the IRS over this. When I raised the issue with an accountant he bust out laughing. "Patrick, if the only refrigerator you own is in Japan and turned on right now, this is not a close call."
For what it's worth.
1 - There are ways around this. For instance you don't have to pay yourself a salary.
2 - I've flown in and out of the US numerous times this year and have yet to be "molested" or even go through millimeter wave scanning. Even then the radiation dose is minuscule. You'll get more exposure to radiation on the flight itself than in the scan. Don't let your fear rule you.
3 - Telepresence isn't the problem; the 8-hour time difference is. Technology will not surpass this unless one side becomes nocturnal
That is not my experience. While the odd all-nighter can be productive when deadlines are looming I think many would agree it's not the best practice. Personally I like to sleep normal hours and function in the daylight
We have a product. We have beta customers and it seems we will have revenue of about $30K/year (that is according to survey of existing customers). We believe the revenue should be 100M/year :)
But we are not sure if we know what we don't know.
We are old (in 40s) and geeks (never did any business before but we dreamed about).
Does it make sense for us apply to Y combinator? Meaning what path would be the most efficient for us?
That's a big question. Let me attempt to answer it by breaking it down.
> We have a product
Several of the hottest companies in the last batch had been around for years before YC. Also, AirBnB.
> We are old.
I don't think that's an issue. Ever since the announcement of the Start Fund, YC has seen more and more seasoned founders come in. My -favorite- company in the S11 batch is a group of wickedly-smart guys in their 30s who've never started a company before.
> Does it make sense for us to apply to YC?
Depends. YC gives you exposure, business and investment contacts, operational help, and focus. For many companies, those things move the needle. If you're willing to give up a minuscule slice of your company to open up growth opportunities, then do it.
Nowadays it is common for YC founders to be older. One group of founders had 9 kids between the 2 of them that they brought to Mountain View for this last YC batch. Those guys also had a product already, although after YC it is a few times larger and they raised a nice seed round. Go for it!
How were they able to afford it? Living off the money YC gives you is one thing if you're the proverbial single 20-something, much different if you're married with 4 or 5 (!) kids.
Having kids just changes the equation a bit, it's not a unpassable roadblock. If you have 1/3rd of a dozen kids, you've probably had a job for a while, credit cards with excessively high limits, etc. It's not impossible to get enough savings to survive for a fixed amount of time, and the credit cards can provide a nice safety net just in case.
Why not? I applied previously not so much for the money but rather the mentorship, advice and relationships that could be built.
Don't sell yourselves short because your "old". Sell the fact that your mature, disciplined and responsible enough to commit to this company and bring tremendous experiences along with you.
Can anybody that is in or has been through YC answer these questions:
How difficult and costly is it to find a place in SF for 3 months? It seems like a large part of the YC money would get used up for the founders basic living expenses.
Do most YC company founders go in debt / use savings / use most of the YC money, to cover personal expenses while they do this?
Most new founders don't live in San Francisco. YC encourages you, and rightly so, to live in and around Mountain View, where rent is much, much cheaper than the city.
Shameless plug: I want to do this 100%. I have exhausted every single person I know who codes for the passed 4 years. It pretty much comes down to "They don't want to do the work and are completely happy in their current job".
If anyone is interested, I would love to be your co-founder.
I have built several websites. I am experienced in both C# and Java. Ive built several Android Apps. I know DBs like the back of my hand and I have DRIVE.
I have an amazing idea. Ya of course everyone says that, but I really do. Its a total niche idea and it has the ability to make money from both users and sponsors alike through subscriptions and sales from the application. I am currently iterating the idea my self through the night, but would love for someone to jump on board. This niche is supported by well over 1000 groups willing to pay good money. There is no competition to the point I want to bring the idea.
I want to apply, but I am totally a Solo here. Anyone want to co-found an idea? I want someone who is 100% ready to jump in.
For the love of God, take your time to find a co-founder. I entered YC as a single founder, and ended up finding a co-founder half way through, it'll happen when it's the right time.
YC looks for amazing teams, they can tell if you just joined up with someone last week and have no clue about one another.
Wait, I don't get it. If you have such skills and an idea that you truly believe in why haven't you started coding it yet? It doesn't have to be much, perhaps you can't even do all of it yourself, but you should at least TRY. If your skills with C#/Java/DBs aren't an exaggeration, I don't see any reason why you shouldn't at least start.
It's great that you're looking for a co-founder, this is a great start, but just don't jump head first into a relationship without getting to know them first. You should keep doing what you've been doing by meeting up with a lot of potential co-founders, discussing your idea, gauging their enthusiasm, skillset, and how well you think you'll get along.
Personally, I would be hesitant to join a startup as a cofounder with another cofounder who hadn't shown the initiative to begin necessary work as early as possible, regardless of circumstance.
It doesn't matter. Good co-founders are much more sensitive to the fact that you pitch your "great idea" and still haven't done anything about it -- based on experience organizing a co-founders meetup for two years now.
Hustle a co-founder on community sites (e.g. Forrst). I did (http://forr.st/~1rG) and it worked out wonderfully. If you want a co-founder, you have to go out and find one (especially if you want a good one).
why haven't you built it yet ? The probability of being accepted as a solo founder would be greater, if you have a product and have traction if its an amazing idea.
If we have a project that we think has potential to be turned into a sustainable business, but simply haven't had enough time to be able to even identify a good co-founder candidate... should we just wait and apply next cycle once we've found someone that's a good fit?
I can imagine that bringing on a co-founder type later on in development might be the sort of thing that always turns out badly, but I don't really know. It seems shortsighted to let important things like product development and identifying customers take a backseat in favor of finding a co-founder when you're not even sure precisely what you're building yet.
I also find this question challenging since I applied for a previous YC with a solid co-founder who has since moved on to stable work since we got little interest from competent angel investors, so it seems like a step backward to even consider applying without a co-founder this time.
PG - Quick question, Does it hurt to apply too early? like before some demos etc. are actually finished?
i.e. My idea is fleshed out but some of the project the application is for is not yet, if I submit now are you guys more or less likely to take a look at it when I re-submit with updated URL's etc.?
Sorry if this has been asked/answered before: is there a disadvantage to applying multiple times? In other words, is it better to wait until you are totally sure you have your strongest application, or is it worth taking the risk, and then applying again when you are further along with your project?
Take the risk and apply. They are looking for brilliant people and are willing to mold and improve your idea or give you an entirely new idea if they like your team. While there needs to be a basic concept/product there, they really do count the team much higher than the idea.
I applied for Summer 11 and didn't get in and I'm still serious about what I'm doing so I'm applying again. If nothing else maybe they'll remember me and if I dont get in there's always the next session. It doesn't hurt to keep putting yourself out there. Good luck.
I've applied twice as a solo founder and have had no luck. If you think Sam Altman is tenacious you definitely have not met me yet. I haven't sold Obama O's like Brian Chesky and the gang but I have some stories that would be considered equally compelling by most.
I founded a company and had an exit while still in college full time. I had 13 employees when I was 19, I currently work for a well funded startup with top tier investors and ship code every day. Yet even with all that said I have not managed to get to the interview round.
This time around I have something a little more special in store for my application, so we shall see how this works.
For me (like many others I'm sure) the problem is not selling people on the idea, it is selling qualified people on the idea. I want to bring on someone who can truly add value to the team and I want a partner not just another body.
It's just finding a way to stand out on the application process that a solo founder has a hard time with, I think many solo founders don't realize exactly how hard that is when the YC staff reads through more than 2,000 apps each cycle now.
I don't know if finding a co-founder is about tenacity. When I was looking for a co-founder for my idea, the problem wasn't finding someone who was interested or qualified - it was finding someone I thought I could work with that closely, and someone I could trust 100%. The poster is probably in a similar scenario...
I will without a doubt, I will have two preferably and the equity split would be equal among the founders. That said tenacity does not mean - "Acts quickly with no regard for future consequences" so I am careful and calculating with every move I make and it means everything to me that I find exactly the right person to work on this with. Passion has to be involved to a certain degree to make a startup work and as someone who had a partnership go to the wayside before compatibility and commitment are of the utmost importance for me in my search for a co-founder
I wouldn't take YC's decision to heart. They have no crystal ball and cannot know if you will ultimately be successful. You should be willing to persue a good idea regardless of your YC application, which I think is largely a crapshoot anyways.
From my experience of entering YC as a single founder, you need to find a key and simple differentiator that separates you from all of the co-founded companies applying. It should be super clear and concise why you are going to succeed when other's aren't. Statistically, single founder companies fail a hell of a lot more than co-founded companies, you need to give them a reason to take a chance on you.
Also, don't place too much importance on the idea, they know you'll figure it out eventually.
I certainly am not claiming to be a Rockstar however I will answer your question in the best way I know how.
I believe in people truly adding value, I know from experience (knowing YC Alums) that YC adds value and can turn a good product into a great product. I am not too proud to know that there are lots of people out there who are Faster, Stronger, Smarter and probably better looking than me however I am also aware that if I am not actively seeking out those people (I believe YC has tons of them) then I am already a step behind those who are.
So while I truly believe with the right product and vision I will succeed no matter what I find no harm in trying to better myself via a program like YC.
I wouldn't say anything YC provides can't be found elsewhere with some good old fashioned elbow grease and networking. But for a lot of people it will offer a big head start.
EDIT: What's with the downvotes? I thought HN was mostly hivemind-free, but I guess not when it comes to YC?
I'm not 100% sure, but it looks like 9 out of 64, which is a larger percentage than normal. I doubt it's due to growth though; it's probably just a fluke.
(The reason it's 64 and not 63 is that two of the startups in this batch merged part way through.)
That's 14%. What % of applicants were single founders? I know you have a predisposition against singles, but that's actually higher than I would have expected.
I spent a few years trying to go that route. It's death. Death. If you can't sell someone else on joining up, how on earth are you going to sell someone in giving you money?
Solo founder here. YC S10. We have 8 people now, are well funded and making good revenues. It might not have worked for you but that doesn't mean it can't be done.
That doesn't change my advice to folks to find a co-founder.
Right, but you're not advocating the "stop the world" and do nothing until they do find a co-founder, are you? I guess that's my point: a solo-founder isn't necessarily somebody who intends to stay a solo-founder, but are likely someone who just hasn't found their co-founder(s) yet. And I, for one, would not advocate stopping everything until you find that person (or persons).
If you can't sell someone else on joining up, how on earth are you going to sell someone in giving you money?
That's dramatically over-simplifying things. It's not just about selling "somebody" on the idea, it's about finding the right "somebody" AND then selling them on the idea, AND them being in a position where they're able to jump on it.
If you're willing to just take anybody on as a co-founder, you can easily have 5, 10, 15, 20, 372, or 14000 co-founders. But if you're discriminating and looking for the right match of interests, skills, experience, enthusiasm, personality, etc., it can take a long time to find somebody who's right.
I don't think you can make a blanket statement that easily. For some people, being a solo founder is a decision and can be best suited for them. If they have a great skillset to do it on their own, I don't they need to depend on a co-founder.
I can see two ways of finding partners:
1) Your existing social circle
2) Networking with like-minded strangers at meetups/community
Regarding, 1, not everyone in a social circle can A) add unique value, B) be in a position to take on the risks, or C) desire entrepreneurship, perhaps being a better first employee
As far as networking approach, having a good partnership surely would increase % of success. But a partnership made in haste with someone you might hardly know will surely increase the chance of failure even more so.
The 3 months of YC will be some of the hardest you work and you'll be working in extreme close proximity to your co-founders. If you don't go the solo route, just keep in mind that when looking for a co-founder you want someone who will happily go through that with you.
i applied as a solo founder for S11, and didn't get a single hit to my app's demo. since then, i've been lucky enough to join a team (we met through a yc reject hacker dating event at the hacker dojo!) and we're pumped to apply with a new idea for W12 :)
solo is hard, not just on yourself, but also in terms of statistics. it can be done, but it's probably easier to find at least another person to tilt the odds slightly in your favor.
Third time's a charm. Good luck. For what it's worth keep the focus on you. YC companies have changed ideas mid-term many times from what I've noticed and it seems they're entirely interested in the individual members of the team.
pg - if one of the co-founders who won't be the CEO lives far away on another continent, is it required that he/she show up for the interview? While I don't expect this to be a problem either way, we're just thinking of ways to minimize costs.
Edit: I'm talking specifically about the interview. If accepted, we'd both come down.
Is it worth applying to Y Combinator if your company is already profitable? My partner and I have a company that is generating enough profits that we are able to work full-time on it, get paid a decent salary, and still have some left over to re-invest into the company at the end of every month.
In the meantime, a shameless plug: if there are any devs out there in DC or NYC who want to join this startup as a technical co-founder let me know. The early version of the product has validated the idea, we have a nice userbase, an impressive following, and deep ties to our industry, contact me - dan at danjberger.com - i'd love to chat :)
They don't help you with visa stuff, you need to do it on your own. An H1B holder can work for his or her own company now, but you need lots of money (~400-500K) and need to pay a real salary (60K ish for a software engineer). The H1B is not a startup visa, perse, it's meant for established companies.
Thank you PG, I really appreciate your reply. The person I have in mind is brilliant and picking up programming concepts quickly. We also work well with each other and he is someone I can count on to stick with me through the hard times.
From this thread, it almost seems that a founder dating section of HN would be pretty beneficial to a lot of people. Granted, there are already too many find-a-cofounder sites out there, but the caliber of people and ability to see the past posting history of a potential cofounder on HN seems to be potentially valuable.
Just curious, is there any stigma attached to companies that apply without being 100% on everyone being able to move to the Bay Area? I personally can move, though, my co-founder is still in school (it's just the two of us). Is it better to just wait until everyone can move?
I'm looking for some co-founders for the next cycle. Tried my social circles and ran into the competence and drive issue that many of you probably experienced. If you are interested we should definitely talk. Shoot me an email at carden.justin@gmail.com
I am planning on applying this round, but I have to admit that I hate making presentations, in fact I am dreading the 1 minute video I have to make for the application. I imagine that I will get over it.
:D Thanks for the heads up! I can tell there are a lot of excited founders in here, myself included! "Looks frantically in nightstand drawer for napkin with MASTERPLAN scribbled on it" jk.
How do people start up with less than $20K? That's barely enough to cover basic icorporation + lawyer + equipment + website graphic design. If you need to hire somebody professional (like sales guys), what do you do?
Incorporation is basically free because YC does it in bulk, and uses their own in-house lawyer for it.
Equipment is free because all you really need is your own laptop and Amazon EC2.
YC companies are usually started by hackers who don't outsource graphic design, or if they do they do it cheaply because they do much of the implementation themselves.
The $20k goes mostly to living expenses for the summer. You're expected to raies further capital after that.
(As a side note, thanks to Yuri Milner and StartFund, you now get easy access to an additional $150k, but I can say from experience that's far from necessary)
$20K is a LOT of money. You can form an LLC for a hundred bucks, lease a server for another hundred, and do your own graphic design at the outset (or hire a student for a couple of hundred).
To hire a sales guy, just use the money from all the sales that are taking up so much of your time you need to hire someone else to handle them. That comes a little bit later...
* My understanding is all YC companies are C-corps.
* That's because LLC's and S-Corps have limitations on shareholders and share classes.
* The C.W. is that any major external investor is going to rip up your corp structure no matter what you do.
* It's almost certainly not the case that YC would turn town a promising team because they were already an LLC. The principals just need to unanimously agree to convert.
* You should get some kind of limited liability structure ASAP when you start, because until you do, most/all of your company obligations attach themselves to your credit, your assets, your mortgage, &c.
* Of the limited liability structures available to you, LLCs are the fastest and cheapest. S-Corp and C-Corp only change taxation and equity structure.
$20K is NOT a lot of money. Consider that hiring anybody will cost you at least $40K/year. Hiring a senior level programmer will cost you $130-180K/year (counting his salary, benefits, taxes, accounting, work place).
And a large corporate HQ will cost you in the millions. You can pay for all of these things out of profits (or funding) once you've successfully built a product.
Someone can correct me if I'm wrong, but I believe YC provide an in-house lawyer for incorporation etc.
They're probably expecting people to provide their own equipment, every company gets offered free hosting and they can also take a further investment if they want it
Part of the point of the small initial investment is to force companies to be thrifty and resourceful. At this stage you are not hiring salaried employees. You are compensating in equity, deferred payments, recognition, favors, etc.
