Poll HN: Are you more likely to apply to YC now that you could get $150K?

https://news.ycombinator.com/item?id=2162867

by il • 15 years ago

17 23 15 years ago

news.ycombinator.com

bowmande• 15 years ago

My co-founder and I have been planning on applying since we started working on our prototype. The announcement of the 150K definitely helped my wife rest easier about the decision. Either way we want to do YC not for the money, but for the mentorship and growth that is difficult to attain here in the Midwest.

aspir• 15 years ago

I think a better question should be "Are you applying to YC with a non-web idea now that there is 150k on the table?" YC has experience with some hardware projects, but most are web-based companies that have low overhead. The previous 17k was barely enough to fund web development, let alone non-web software.

I'd expect to see much more Wattvisions and Wakemates in the future, and more B2B software with a longer, difficult selling curve. The founders will likely be drawing the same thin salaries at first in these situations, and the extra cash will go to product and customer development.

phamilton• 15 years ago

I don't feel like funding is the main problem I face. If I really felt my business was a 100% winner, I could raise that cash. What YC and other accelerators/incubators do that I see is most helpful is help slash down the product into something that is marketable. I have a tendency to come up with "cool" ideas, but lately (as a part of an incubator) I've seen that the least sexy ideas are the ones that have an accessible market. That perspective is the real value from accelerators.

Eliezer• 15 years ago

Personally I'm less likely to apply to YC now - if there's one thing I hate it's giant heaps of money.

il• 15 years ago

Doesn't matter, awesome Harry Potter fanfiction is where the real money is. You need to get a book deal.

steve918• 15 years ago

150k is anything but heaps of money.

chrischen• 15 years ago

You wouldn't have to take the money.

daleharvey• 15 years ago

if you hate giant heaps of money, applying for any investment whatsoever seems like a bad idea

whatevers2009• 15 years ago

Where are the options for never wanting to apply before and continue to not want to apply now? "Other" option doesn't fit.

amock• 15 years ago

Why doesn't other fit? How can there be anything that isn't covered by other?

mey• 15 years ago

After working in several previous startups founded by other people who were based around VC money, my next project will be personal, small, and focused on long term maintainable growth, rather then a huge payday. I enjoy working in a startup environment, the exploration, the many-hats, and the freedom, but I'm personally sick of the risks of growing big fast, especially when you rely on outside financing that could dry up without warning. (Happened to 2 of the 4 startups)

Edit: Of course without outside funding, I'm currently 4 years away from that attempt. Which may seem like an eternity to some people.

DanI-S• 15 years ago

I've got a family, and need to pay rent. This makes a huge difference to the feasibility of the whole adventure. I'm sure I'm not alone.

ndl• 15 years ago

With the huge amount of publicity and increased likelihood that more older entrepreneurs will apply, the probability of acceptance for some teams may decrease so much as to reduce the average return on investment. $150k seriously opens the space to entrepreneurs with a family to support and may draw out people who were previously hesitant to turn down a 6 figure salary. If experience grants a significant advantage, the just-out-of-college startups may find their acceptance probability approaching 0 and jump ship for smaller, easier sources.

I still plan to apply for this round but shall monitor the kind of startups YC funds in the future to determine how the probabilities change. It depends on how the selectors respond to changes in the applicant demographics.

csel• 15 years ago

Great point. Keep in mind that for the next 4-6 months, a lot of new startups are going to be focused on YC because of the guaranteed 150k funding. This means, there will be a lot of opportunity with other angel investors who will be eager to invest on startups out of YC. And if you are lucky and hardworking (in terms of seeking funding), you may even get more money than the 150k. It is actually a win-win situation for new startups.

generelativity• 15 years ago

I think a larger amount would definitely have convinced me to apply to YC, but 150K is waaaay more than I'd need. My issue is that I'm not 19 and I have a high cost of living--I don't fit either profile.

My real problem is that they, and other incubators to an even greater extent, have cultivated a hippy atmosphere where scraping by on peanuts is glorified and everyone drones on with a humorless "I'm not in it for the money." Pass.

spoiledtechie• 15 years ago

I don't want any money from YC. I would just want the advice and publicity that comes with it. If I could just get that, I would be a happy camper.

ojbyrne• 15 years ago

I didn't see any suggestion that future YC rounds are guaranteed this, just this current round.

johns• 15 years ago

"And Milner/SV Angel say they intend to offer this for each Y Combinator startup in the future, too." from http://techcrunch.com/2011/01/28/yuri-milner-sv-angel-offer-... Not a guarantee though.

rmason2• 15 years ago

I haven't seen any indications that Paul is suddenly going to start accepting older entrepreneurs. If you're over 35 ycombinator will never be an option.

Which only really opens an opportunity for someone else;<).

smiler• 15 years ago

Why do they discriminate based on age?

rmason2• 15 years ago

You think its just an accident that everyone is under 35?

http://news.ycombinator.com/item?id=9986

For sure they don't encourage older people to apply.

bugsy• 15 years ago

I question the judgment of all the bloggers I have seen commenting about this given that not enough information has been given in any article about it in order to say hardly anything.

It has been several days of discussion. There is little discussion that this is a loan, which must be paid back, or at the lender's discretion can convert into equity, without a value cap.

Nor has anyone asked or answered - how much equity are we talking about? It does make a big difference and without knowing both that and the details of each business, no one can say if this is a good deal for either side.

Much discussion acts like this is free money, or winning the lottery, or even that it's a straight trade of equity for cash.

Analysis is at the level of observation that "150 is greater than 17" therefore "it is a better deal now". But "150 is greater than 17" has little to do with anything, and such level of analysis is as financially naive as the prudence shown by those who bought million dollar houses and thought they could afford it because the initial payments were $500 a month, but which came with a variable APR that undergoes a big increase after 12 months, and then has a balloon payment greater than the original mortgage value if you make it to the end of the loan. But the monthly payment is $500 so why not eh, and ignore all other details of the contract. It seems like the financial skills here stop at is one number bigger than the other, and anything involving percentages, conditions, or interest is simply overlooked because it is beyond people's mathematical skills.

Poor math skills and an inability to read contracts are common in our society and this weakness is definitely exploited in many situations.

somecola• 15 years ago

I only want enough to pay the bills for three months and fly home on the weekends.

Poll HN: Are you more likely to apply to YC now that you could get $150K?

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