The Y Combinator Experience

http://ryanamos.org/2010/03/the-y-combinator-experience/

by RyanAmos • 16 years ago

63 36 16 years ago

jeff187• 16 years ago

I am really envious of the "Y Combinator Experience". Is there any way to get introductions to the various connections, go to the mentioned startup meetups (we are located in San Francisco), and get some friendly advice, without giving up equity?

I don't want to give up 5-10% of my company and the ~$10k would not make a difference, however I would love to be more involved in the community, and am particularly jealous of this paragraph:

"When you’re accepted into Y Combinator you are part of a community of 172 startups, that take every opportunity to help one another. Being part of this community is invaluable. Six months after our session of Y Combinator ended, the founders of S09 regularly meet, and I would consider us a close group of friends."

Is there any way for a non-YC startup to become an honorary member of this group?

prawn• 16 years ago

Alternatively, what might be some key ways of creating that camaraderie and supportive network outside of the YC experience? I imagine a sense of achievement or difficulty (in it being challenging to gain entrance) might take a group beyond "regular meet-up" status?

coryl4• 16 years ago

I really don't think theres any way to replicate the Y Combinator experience without being apart of YC.

If you want introductions and advice, you need an angel with a background similar to PG (made money in tech, invests in startups).

The reason the alumni are so close is because they all go through something very hard together. I don't think YC was planning for such a supportive alumni network, rather, its just the magic that follows when something special is created.

baguasquirrel2• 16 years ago

I couldn't give a damn about giving up equity. If they didn't have a stake in you, then there wouldn't be as much motivation for them to make you succeed, would there? Founders need to be less greedy about this equity thing. It's more about whether your chances of success are amplified enough by what you give up, i.e. Expected Value.

http://en.wikipedia.org/wiki/Expected_value

If you don't want to give up equity for that little of an amount, and you've got something, then go pitch an angel investor directly. YCombinator is not the end all be all. I think it's important for newbs like us to get our feet wet so we have an idea of how much (or how little) bargaining power we have, and where we stack up against other entrepreneurs. Finally, everything in this world is negotiable. You could apply and work out the numbers with them, and I don't think there's a requirement to accept if you're accepted (correct me if I'm wrong).

What I would envy is not getting into that sort of club. For a moment (however small that moment is), it makes you wonder how you could ever possibly make up for not having that advantage (that being said, lamenting about such a thing is unbecoming of an entrepreneur, and the motto of "be endlessly resourceful").

tolmasky4• 16 years ago

I really don't understand why people get so hung up on the 5-10% thing. This is seriously a bargain, to the point where all the YC founders are arguably actually ripping pg off.

He only gets 5-10% of your current company, while you get his help, a ton of connections, and the YC networks and friendships for life

pvg5• 16 years ago

Oh please. It's a big chunk of equity. It's not a bargain and nobody is ripping pg off. It's great that pg is helping startups on terms that both he and the startups that accept the investment understand. Portraying it as charity or martyrdom is absurd, though. YC themselves don't.

dnsworks• 16 years ago

Deja vu.

"and friendships for life"

I've heard this same exact argument from friends who were justifying why they were hazing for fraternities in college. Not a criticism, just an observation.

jeff187• 16 years ago

To clarify, I think YC makes a lot of sense for a lot of startups. However, I am not sure if my startup would be a good fit for YC. It is slightly older, already profitable, etc. YC seems to invest really, really early on, which is why 5-10% and a small amount of cash makes sense.

However, even though I am not part of YC, I'd love to meet up with fellow SF startups -- I have never found an online community I identify more with than HN. Also, surely many people who give advice to YC startups are not on the payroll and would be happy to talk to me, if I had their contact info.

Maybe I'm wrong since I'm not part of the group, but I feel like the identity of "young, full-time startup" is much more important than "young, full-time startup [yc funded]".

gyardley2• 16 years ago

Well, if your startup starts to generate significant cash, giving up even a fraction of a percentage of equity as preferred stock (with typical preferred stock rights) is the difference between paying yourself a startup founder's salary and paying yourself as much as you possibly can. In other words, you're shutting the door on a very common way of getting wealthy, the one the vast majority of successful small business owners use.

Certain things about taking investment are binary - percentage ownership is nothing, investor's rights are everything.

rantfoil• 16 years ago

5-10% is negligible in the face of a 10x or 100x multiple on your potential.

jeff187• 16 years ago

If I could multiply my startup by 100x, I could retire in a couple of months. ;)

dannyr5• 16 years ago

So you want to get the benefits of a YC startup without giving anything in return?

jeff187• 16 years ago

Not exactly. In hindsight, maybe my post was offensive, but I did not intend it to come off that way. I am not looking for the full YC package (I'm not sure if my startup is even eligible to apply). What I meant was specifically

- I would like to hang out with like-minded, serious startup folk in San Francisco.

- I would like to meet a seasoned entrepreneur and have a chat about my plans.

- I would like an introduction to a few investors to bounce some ideas off of.

For those three things, I am not willing to give up 5-10% of my startup, which is profitable, and relatively mature compared to YC investees. Additionally, I am sure a full-fledged YC investment offers far more than those three points. ;)

DaniFong• 16 years ago

Sort of.

The YC founders are a pretty cohesive group, so if you get into their circle you get a lot of the benefit. This goes for SV/SF based startup founders generally, too.

Since it's such a closed group, if you make friends with people at one meet up you'll end up expanding your circle to several. There are some open meetups (e.g. Hackers and Founders) and also meetups on technologies (e.g. SF Javascript).

Roridge• 16 years ago

I too am jealous of the Y Combinator Experience. To rectify this I have submitted my application. I don't have a degree from MIT either, and this blog post has helped me remove some of my concerns. Thanks Ryan.

The Y Combinator Experience

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