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What Founders Ask Founders About Getting into Y Combinator

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Re: What Founders Ask Founders About Getting into Y Combinator

#21

Post by sytse »

jkarneges wrote: post #19

Most people I know that are interested in starting a company need help near the beginning, within 6-12 months of setting out on their own. Almost always pre-revenue, and very early traction (if b2b, maybe just a few users evaluating). Where are these kinds of entrepreneurs supposed to go? Is it still YC, when they have to compete with already-successful applicants? Kudos to GitLab bootstrapping to $1M ARR though. Tha…

YC is very helpful in the beginning, I wish we would have applied earlier. Many people in our batch where pre-revenue and pre-launch. You can always apply again the next batch when you have the numbers.

Thanks for the kudo's. If someone wants to interview me to write that story I would love that. BTW I think the $1m number it was our last month multiplied by 12 instead of being true ARR as I know it know.

Re: What Founders Ask Founders About Getting into Y Combinator

#22

Post by vbhartia »

sytse wrote: post #20
vbhartia wrote: post #17

Reading through your YC application, you were already so successful ($1M in rev, 60% growth rate, 1M users), did you ever have second thoughts about going through YC? If you had not gotten in, what would you have done otherwise? Congrats on your success!

Thanks! We never had second thoughts about YC. We did talk a lot during YC if we wanted to take outside investment. If you take investment you need to work to a liquidity event (acquisition or IPO). Since we would like to stay independent the only option is an IPO. Not many companies make make that. But we also wanted to make GitLab a great and popular solution. For this we need the best marketing and sales people. W…

Got it. Thanks! How did you think about the standard terms - 7% of your company for 120k. Seems like you would've had a higher valuation already, so 7% would have been costly. Feel free to not reply, I understand if you can't disclose terms.

Re: What Founders Ask Founders About Getting into Y Combinator

#23

Post by sytse »

jnpatel wrote: post #18
sytse wrote: post #4

Earlier quoted context omitted.

Yes, please coordinate with kirsten@gitlab.com for a 25 minute Google Hangout with me, please link to this comment in your email to her. If the advice is generic enough we might work with you to publish it https://about.gitlab.com/handbook/people-operations/ceo-pref... (you have a final say in what gets published). This process was also used to produce the OP.

Sid, willing to meet with us too? It'd be very appreciated! (I totally understand you can't do this for everyone who'll ask.) P.S. I'm also open to a peer feedback session for anyone else applying!

I'd be happy to. Shall we make it a video call other people can join too? Tomorrow, Saturday, at 11:00 Pacific?

I'll be in https://gitlab.zoom.us/j/351494573 at that time for anyone that can discuss their application publicly.

If you attend please comment so, if you can't also comment so we can try to find an alternative.

By the way, I'm a YC participant and not a YC partner. I don't speak for YC and I'm just trying to help.

Re: What Founders Ask Founders About Getting into Y Combinator

#24

Post by sytse »

vbhartia wrote: post #22
sytse wrote: post #20

Earlier quoted context omitted.

Thanks! We never had second thoughts about YC. We did talk a lot during YC if we wanted to take outside investment. If you take investment you need to work to a liquidity event (acquisition or IPO). Since we would like to stay independent the only option is an IPO. Not many companies make make that. But we also wanted to make GitLab a great and popular solution. For this we need the best marketing and sales people. W…

Got it. Thanks! How did you think about the standard terms - 7% of your company for 120k. Seems like you would've had a higher valuation already, so 7% would have been costly. Feel free to not reply, I understand if you can't disclose terms.

I hoped for another valuation but we got the standard terms. In hindsight it was a really good deal for us. It is not about the $120k. They way I look at it now is, did it make us 10% more successful and valuable? For sure it did. The money is secondary, it is more like a full scholarship so you can attend the program than an investment.

Re: What Founders Ask Founders About Getting into Y Combinator

#25

Post by vbhartia »

sytse wrote: post #24
vbhartia wrote: post #22

Earlier quoted context omitted.

Got it. Thanks! How did you think about the standard terms - 7% of your company for 120k. Seems like you would've had a higher valuation already, so 7% would have been costly. Feel free to not reply, I understand if you can't disclose terms.

I hoped for another valuation but we got the standard terms. In hindsight it was a really good deal for us. It is not about the $120k. They way I look at it now is, did it make us 10% more successful and valuable? For sure it did. The money is secondary, it is more like a full scholarship so you can attend the program than an investment.

Yeah - makes a lot of sense. Thanks!

Re: What Founders Ask Founders About Getting into Y Combinator

#26

Post by vbhartia »

jkarneges wrote: post #19

Most people I know that are interested in starting a company need help near the beginning, within 6-12 months of setting out on their own. Almost always pre-revenue, and very early traction (if b2b, maybe just a few users evaluating). Where are these kinds of entrepreneurs supposed to go? Is it still YC, when they have to compete with already-successful applicants? Kudos to GitLab bootstrapping to $1M ARR though. Tha…

I agree - It really feels like YC is now geared towards more later stage companies. Companies that are in the growth phase vs. finding product market fit. Also you have to be full time on your idea in order to be taken seriously.

Is that a misconception?

Re: What Founders Ask Founders About Getting into Y Combinator

#27

Post by sytse »

vbhartia wrote: post #26
jkarneges wrote: post #19

Most people I know that are interested in starting a company need help near the beginning, within 6-12 months of setting out on their own. Almost always pre-revenue, and very early traction (if b2b, maybe just a few users evaluating). Where are these kinds of entrepreneurs supposed to go? Is it still YC, when they have to compete with already-successful applicants? Kudos to GitLab bootstrapping to $1M ARR though. Tha…

I agree - It really feels like YC is now geared towards more later stage companies. Companies that are in the growth phase vs. finding product market fit. Also you have to be full time on your idea in order to be taken seriously. Is that a misconception?

YC is still very much accepting companies that are still finding product market fit. But as far as I know you it really helps if you're willing to commit full time.

Re: What Founders Ask Founders About Getting into Y Combinator

#29

Post by tlogan »

jkarneges wrote: post #19

Most people I know that are interested in starting a company need help near the beginning, within 6-12 months of setting out on their own. Almost always pre-revenue, and very early traction (if b2b, maybe just a few users evaluating). Where are these kinds of entrepreneurs supposed to go? Is it still YC, when they have to compete with already-successful applicants? Kudos to GitLab bootstrapping to $1M ARR though. Tha…

My understanding is that YC combinator is either for companies which already made it and any VC would love to invest (like GitLab) or they are in very early stage (pre-revenue).

If your company is so so (i.e., you are making money but growth is anemic, etc.) then YC is not for you. But you can always close the company and start a new one and apply to YC.

At least that is my understanding and experience.

Re: What Founders Ask Founders About Getting into Y Combinator

#30

Post by jnpatel »

sytse wrote: post #23
jnpatel wrote: post #18

Earlier quoted context omitted.

Sid, willing to meet with us too? It'd be very appreciated! (I totally understand you can't do this for everyone who'll ask.) P.S. I'm also open to a peer feedback session for anyone else applying!

I'd be happy to. Shall we make it a video call other people can join too? Tomorrow, Saturday, at 11:00 Pacific? I'll be in https://gitlab.zoom.us/j/351494573 at that time for anyone that can discuss their application publicly. If you attend please comment so, if you can't also comment so we can try to find an alternative. By the way, I'm a YC participant and not a YC partner. I don't speak for YC and I'm just trying…

Sounds great, looking forward to chatting with you and others!
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