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Was Y Combinator worth it?

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Re: Was Y Combinator worth it?

#11
post #6

What a curious product: CSV import as a service (or hosted on premise). Would love to know where they pivoted from (according to the blog post).

We actually pivoted multiple times:

1. We applied to YC and initially started work on what we referred to as "data-stack-as-a-service". The premise was to provision, configure, and maintain the different components required for a data stack: Data Warehouse, Integrations, Transformations, Visualizations, etc. We had a working product and a few paying customers. Ultimately we decided to pivot as we felt the market for this was only small companies with small budgets (many of whom might not even need a mature data stack).

2. Then we released a small open-source tool for Postgres that could easily send webhook notifications when data was changed (pg triggers sent websocket messages to a Go application). Off of this we dove deeper into database tooling and building a platform that offered branching, change management, and other modern features for Postgres. We also had a prototype and slightly larger contracts with a few early customers here. We decided to pivot from this for a few reasons, but ultimately we lost conviction in the idea and were more excited about data import challenges that came up during user interviews.

3. As you mentioned, we're now working on CSV import as a service. After building and maintaining CSV import tools many times ourselves, we believe there's an opportunity to provide a robust, pre-built experience. There are actually a few other products in the market today. Our initial focus is to be the most developer-friendly choice (a big part of why we're open source). We want the decision to leverage an existing service to be a no-brainer for any engineering team tasked with supporting CSV import.

Re: Was Y Combinator worth it?

#12
post #6

What a curious product: CSV import as a service (or hosted on premise). Would love to know where they pivoted from (according to the blog post).

Not all that curious... https://flatfile.com

If you're building a vertical SaaS and want to support import from a file, and don't want to spend time reinventing the wheel, this could be a big win. This would let new users bring in existing data from another SaaS (that supports CSV export) or where the incumbent is likely to be Excel. The development time it would take to make something like this solid, usable, and flexible enough to handle different formats would, in most cases, be better spent on building domain-specific functionality.

Re: Was Y Combinator worth it?

#13

You know, I've been reading Hacker News for god-knows-how-long, and it never occurred to me to look up what Y Combinator even was.

thats what i love about hn.

i sometimes think yc is just a front to secure payment for hn servers for many many years.

Re: Was Y Combinator worth it?

#19
> We, however, were not in this position. Eric and I still had full-time jobs when we were accepted. While we had been meeting regularly for a few months to discuss different ideas, we had absolutely zero traction, no working product, and very little validation.

This is the key part IMO. It's easy to give up 10% of what is essentially an idea in your head in exchange for $500K and some legitimacy from a big brand. That is exactly how an "accelerator" is supposed to work. If you have spent time (sometimes years of your life) and significant money actually building a product, finding a market fit and gathering customers, YC's terms will likely be much harder to swallow.

Re: Was Y Combinator worth it?

#20

Earlier quoted context omitted.

I think the real question is whether the benefit is worth the 10%. That's pretty expensive. From a macchiavellian perspective, it does appear that the benefits mostly attach to the founders (unless you are selling products to startups) and the 10% attaches to the company, which suggests that the optimal strategy post-YC may be to fail and start another company. Edit - Obviously I'm not suggesting killing a good compa…

That is entirely dependent on how much you're leaving on the table by failing. When gambling, it might make sense to quit while you're up but that entirely depends on the expected value of your next bet. From a macchiavellian perspective, you also have to consider how much benefit the founder would stand again from having a more successful startup instead of failing.

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