Getting Into Y Combinator - TWICE!

Here’s my personal experience getting into Y Combinator and what I think you should do if you want to get in. BIG DISCLAIMER: I am not an expert, I don’t work for YC and haven’t been in one of the new, remote-only batches. YC is constantly evolving and improving their process for finding great companies, so I encourage you to get multiple opinions here and try and find advice directly from YC partners themselves. That being said, here’s what’s worked for me, and what I think is generally true about the YC application and interview process.

ABOUT Y COMBINATOR:
Y Combinator (YC) is an American seed investment startup accelerator launched in March 2005. It has been used to launch over 2,000 companies, including Stripe, Airbnb, Cruise Automation, DoorDash, Coinbase, Instacart, Dropbox, Twitch, and Reddit. The combined valuation of the top YC companies was over $300 billion as of January 2021. The company's accelerator program is held in Mountain View, California.

Y Combinator was founded in 2005 by Paul Graham, Jessica Livingston, Trevor Blackwell, and Robert Tappan Morris.

From 2005 to 2008, one program was held in Cambridge, Massachusetts, and one was held in Mountain View, California. As Y Combinator grew to 40 investments per year, running two programs became too much. In January 2009, Y Combinator announced that the Cambridge program would be closed and all future programs would take place in Silicon Valley.

In 2009, Sequoia Capital led the $2 million investment round into an entity of Y Combinator to enable them to invest in approximately 60 companies a year. The following year, Sequoia led an $8.25 million funding round for Y Combinator to further increase the number of startups the company could fund.

Then, in 2011, Yuri Milner and SV Angel offered every Y Combinator company a $150,000 convertible note investment. The amount put into each company was changed to $80,000 when Start Fund was renewed.

In September 2013, Paul Graham announced Y Combinator would fund nonprofit organizations that were accepted into the program after having tested the concept with Watsi (while continuing to fund mostly for-profit startups).

In 2014, founder Paul Graham announced he was stepping down and that Sam Altman would take over as president of Y Combinator. That same year, Altman announced "The New Deal" for YC startups, which offers $150,000 for 7% equity.

Late in 2014, Sam Altman announced a partnership with Transcriptic to provide increased support for Y Combinator's growing community of biotech companies. Then in 2015, he announced a partnership with Bolt and increased support for hardware companies.

The YC Fellowship Program was announced in July 2015, with the goal of funding companies at the idea or prototype stage. The first batch of YC Fellowship included 32 companies that received an equity-free grant instead of an investment.

In January 2016, Y Combinator announced version 2 of the Fellowship program, with participating companies receiving $20k investment for a 1.5% equity stake. The equity stake is structured as a convertible security that only converts into shares if a company has an initial public offering (IPO), or a funding event or acquisition that values the company at $100m or more. The YC Fellowship was short-lived. In September 2016, then CEO Sam Altman announced that the fellowship will be discontinued.

ABOUT JOHN COOGAN:

I've been an entrepreneur for nearly a decade across multiple companies. I've done a lot of work in silicon valley, so that's mostly what I talk about. I've raised over 10 rounds of venture capital totaling over $100m in total funding.

I work mostly in tech-enabled consumer packaged goods, meaning I use software to make the best products possible and then deliver them to the widest possible audience. I'm a big fan of machine learning, python programming, and motion graphics.

OTHER VIDEOS:

The Saga of Naval Ravikant (Founder of AngelList) -

CONTACT:

Disclaimer: This video is purely my opinion and should not be regarded as a primary source. I am not a financial advisor and this is not a recommendation to buy or sell securities. Always do your own due diligence.

[webook]

Thanks for sharing your experiences and insights. Our first application to YC was rejected with feedback on not knowing who the team really are. However YC were very willing to help founders with creating a profile to understand them better. We think it's totally important to be part of the program even if the investment is not taken. The guidance, library and network at YC is a great place for all the startups who has a global market.
We are working on applying again this month.

[ЕвгениГеоргиев-тя]

The inverted pizza model is something i would employ in my presentations. Thank you John.

[minimoneydocs]

The advice you give here 8:21 and here 9:53 are invaluable!

[sumandangol]

🎯 Key Takeaways for quick navigation:

00:00 *🚀 Introduction to Y Combinator and Personal Experience*
Introduction to the video content and the speaker's experience with Y Combinator.
- Overview of what Y Combinator is and how it aids startups.
- Mention of the speaker's two startups that went through Y Combinator.
02:08 *🌐 Y Combinator Program Details*
Detailed insights into Y Combinator's operational method and the value it provides to startups.
- Y Combinator offers a straightforward application process, avoiding the traditional investment complexities.
- The program culminates in a Demo Day where startups pitch to potential investors.
04:28 *🌟 Key Criteria for Y Combinator Acceptance*
Explanation of the essential criteria for Y Combinator acceptance.
- Importance of having a dedicated team and a compelling business idea.
- The misconception that startups need significant traction or revenue to apply.
07:23 *📈 Preparation for Y Combinator Interview*
Strategies for preparing for a Y Combinator interview and maximizing startup progress.
- Emphasis on showing tangible progress in the startup rather than focusing solely on interview prep.
- Insights into the interview questions focusing on problem, solution, and market potential.

Made with HARPA AI

[CharlesWeill]

Great video, with many nuggets of YC application wisdom! Thank you for sharing your own story too, it made it extra relatable. I'll look back on this video next time I apply to YC.

[mentalmodels]

Great video! John Coogan was super helpful to us when we interviewed with YC!

[kenkioqqo]

I have a FinTech app I've been developing for a few months now and I think it will help a lot of people around the world. After watching this informative video, I am absolutely convinced that I need to join Y Combinator to get the mentorship I need to grow it into the kind of startup I see in my vision. Thanks a lot John.

[simonmuriithi]

This is a gem. You shared all the insights I needed to apply.

[matthuang]

Incredibly informative video - and even more impressive that you've gone through YC not once, but twice! Thanks for sharing John!

[joaomarcelofurlan]

That is really valuable information @john. Thanks for sharing your experience -- the part you mention you didn't get in for the first application is very inspirational for a first-timer like me.

[nicetrymate]

this channel is the best, joint-favourite with Gary Tan's

[ajb]

The sharks from Shark Tank rejected the company Ring. The founder sold the company to Amazon, I believe was for a billion dollars

[juliogomez]

Great video, probably the best I’ve watched to date. The inverted pyramid model for responses is mind-blowing, very well thought indeed. Thanks for the great advice.

[RossyDourado]

John always loving your videos... Gsh your video library is GOLD❤

[TheLastCodebender]

Awesome John, love these insider tips!
ps. Nice t-shirt 😁

[WTK]

You literally answered a question I've been looking to know the answer to for months! " Do I get the $125K before or after the 3 months" 1:46

[willdepue]

Had no idea you started soylent. Loving your channel.

[GUILLAJP]

Wish I saw this before I applied. time to rework things before the March deadline

[tarabooartarmy]

I'm really, really glad YC has gone remote. YC is something I could never have done before because I have a husband and kids I will not leave.

I'm struggling to find a team. I have two ideas I'm excited about, and I've gotten super positive feedback on them from people I've interviewed about them (actual potential customers, not people I know) but I just can't find any technical co-founders who believe in the ideas. I've talked with dozens of coders, but they all want to be in SaaS, and they think my SaaS solution is "too hard".

[_zeketorres]

Fantastic startup advice and insights, thank you so much John!!