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Is Y Combinator right for your startup?

19 pointsby bhbabout 18 years ago

9 comments

pgabout 18 years ago
Maybe it's time I finally explained the math of taking investment. You should give up n% of your company iff (not a typo) what you'll get in return for it will increase the value of the remaining (100 - n)% enough to put you net ahead.<p>So in the case of YC, you should trade us 6% of your co if you think that the money plus whatever else we add will increase your average outcome by 7%. (.94 x 1.07 &gt; 1) Do we increase the average outcome of the startups we fund by 7%? I think few would say we didn't. I'd guess we at least double the outcome for the average startup.
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Alex3917about 18 years ago
All of the potential YC startups should get together and unionize to force higher valuations and shorter working hours.<p>/irony
danielhaabout 18 years ago
The downsides to something like this is absolutely context-dependent. But the reasons given in that post just aren't convincing. Going to Cambridge is not a "disruption" given the milestone it represents in your startup's progress. When you're a new founder with little to go in regards to beginning a company, it's the ideal scenario. For my goals, I could not think of a better use of time and energy than being involved in YC's program and working on my startup full-time.
Harjabout 18 years ago
putting a poor social scene as a con. amusing. that's a con if you're deciding where to go on vacation. not whether to accept startup funding from yc.
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brettabout 18 years ago
I understand the timing thing. The Y Combinator schedule is rigid, it's not always going to fit your situation perfectly. After that though, the rest of the downsides listed just seem like quibbling compared to the list of upsides.
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danielhaabout 18 years ago
It seems we're all coming to the same conclusion here:<p>If the social scene, the necessity of travel, and girlfriends is even thought of as issues, perhaps this funding program really is _not_ for you. Perhaps, even, it may prompt you to reconsider if starting a company at this point is right for you. Pursuing a startup requires an extraordinary amount of dedication and focus; the issues presented are not indicative of that.
paulabout 18 years ago
If Ben is serious about making his startup a success, then he should do his best to get into YC. The "downsides" he lists are all excuses that suggest he's not really that committed and isn't willing to go "all in".<p>It's also important to understand that the 6% that goes to YC will be diluted by subsequent rounds of investment, and could easily end up as 1%-2% by the time they cash out.
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dawieabout 18 years ago
It sounds like you guys are already on your way. I guess in 6 month's time you can join YC if you need. I have always wondered if you could join YC at a later stage. When your company is already up and running
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dompabout 18 years ago
I found the girlfriend and location issues to be the biggest challenge for submitting. Luckily my partners gf lives close, I can't score a girl and we both live in Massachusetts. Works out perfect!