> S16: 54.7% did not have a recommendation.
This begs the question: How much weight does a recommendation carry?
Or put in another way: Should you network with YC alumni in case you ever want to apply?
Common Misconceptions About Applying to YC
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Re: Common Misconceptions About Applying to YC
#12> Misconception: If I applied YC and got rejected, there’s no point in applying again. > S16: 45% were rejected at least once before. Of those previously rejected, the average number of rejections before being accepted was 2. What's the most rejections for someone that was accepted and most rejections for someone that was not?
That's actually a pretty neat stat. Most rejections for someone that was accepted in S16 was 7.
Re: Common Misconceptions About Applying to YC
#13[deleted]
Re: Common Misconceptions About Applying to YC
#14Without knowing how many applications meet each criterion, advertising how many YC companies meet those criteria is more misleading than helpful. If 95% of applications are from pre-revenue companies, then the 50/50 split between acceptees which are with/without revenue would indicate that companies with revenue are 19x more likely to be accepted; if half of applications are solo-founder, the fact that only 8.5% of accepted companies have solo founders indicates that they are at a huge disadvantage.
Frankly I expect better than this from YC. You guys have the data, and don't need to be actively deceptive.
Re: Common Misconceptions About Applying to YC
#15> MessageBird was making $20M a year and profitable prior to YC.
Did they get the standard valuation deal (7% equity per 120 K$)?
Re: Common Misconceptions About Applying to YC
#16The biggest surprise for me was this: "Misconception: YC doesn’t accept companies without revenue. S16: 50% were not making money when they applied." Which means 50% were already making money when accepted. Given that I'm guessing way less than 50% of applications are making money, this would seen to be a big advantage. Of course, I could be wrong on that too. :)
Ultimately what you want to do is de-risk the potential investment by showing that you have significant traction, and having actual paying customers is a great way to do that.
Re: Common Misconceptions About Applying to YC
#17> S16: 54.7% did not have a recommendation. This begs the question: How much weight does a recommendation carry? Or put in another way: Should you network with YC alumni in case you ever want to apply?
I've recommended teams that have been accepted, and recommended teams that have been rejected. It's really just another data point to consider, not a golden ticket.
And it certainly can't hurt to network with YC alumni, for reasons beyond just getting a rec.
Re: Common Misconceptions About Applying to YC
#18> S16: 54.7% did not have a recommendation. This begs the question: How much weight does a recommendation carry? Or put in another way: Should you network with YC alumni in case you ever want to apply?
The same logic used by cperciva can be used here:
> If 95% of applications are from pre-revenue companies, then the 50/50 split between acceptees which are with/without revenue would indicate that companies with revenue are 19x more likely to be accepted
Replace revenue with referral.
Re: Common Misconceptions About Applying to YC
#19I found these statistics to be very helpful.
I'll be honest, I have my own misconceptions about YC and it's put me at an impasse of wanting to apply.
1.) From what you read, it seems like everyone has a positive experience. At least in my network, that doesn't seem to be true. I'm not applying the logic that it sucked for X, therefore it must suck for everyone. I just want to know who YC works best for and who it doesn't. After all, the old adage goes, if you're selling to everyone, you're selling to no one.
2.) Following up on that point, I thought very few enterprise startups did YC and that YC would be weak in that category. From the stats, it seems like a majority of startups were enterprise focused! But, the standard YC terms kinda suck for enterprise startups. If your ACV is +$100k, why raise $120k for 7%?
3.) When is the right time to apply? Taking some thinking from pg, you should make 100% focus your customers and product. If I needed to raise $ now and wasn't accepted into YC, I would just go try raise money at that moment. Seems odd to hold out and keep trying.
Once again, I think most of my points are misunderstandings about how YC works. I don't think this should help reflect anyone else's decision to apply. I think it's very likely that I will apply to YC. I just wanted to get some of my thoughts out.
Re: Common Misconceptions About Applying to YC
#20I found these statistics to be very helpful. I'll be honest, I have my own misconceptions about YC and it's put me at an impasse of wanting to apply. 1.) From what you read, it seems like everyone has a positive experience. At least in my network, that doesn't seem to be true. I'm not applying the logic that it sucked for X, therefore it must suck for everyone. I just want to know who YC works best for and who it doe…
> 2.) Following up on that point, I thought very few enterprise startups did YC and that YC would be weak in that category. From the stats, it seems like a majority of startups were enterprise focused! But, the standard YC terms kinda suck for enterprise startups. If your ACV is +$100k, why raise $120k for 7%?
I believe the "enterprise" number in the article includes B2B startups, not just enterprise.
That being said, it's a pretty common misconception that YC is about the money. It generally isn't! Money might be the smallest part you get for that 7%, and certainly is the most short lived, which is why in many cases even companies that are already generating revenue find it valuable to apply. This page covers a lot of the benefits (beyond money): https://www.ycombinator.com/why