We have just passed out of college, and have built a B2B product which is in direct competition to a YC company. Our product has got really good traction in two months, with at least 8-10 big companies using it in private beta.<p>We want to be a part of YC and thinking of applying for W15 batch. Would it be a good idea? Is there a policy that prevents YC to accept companies in the same domain?
YC has the exact opposite of that policy. They'll fund competitive companies. Numerous examples exist.<p>I would be prepared for the question "What do you understand about this that $COMPANY does not?", but you should expect them to ask that about the industry leader first, rather than about a startup with a market share measured in basis points, which describes the overwhelming majority of startups (YC funded or otherwise).<p>I would also be prepared to have people, perhaps including the YC folks and perhaps not, tell you "You're not actually in competition with them."
You should definitely apply. In my batch there was a company in the same space as mine, we don't compete directly but it's pretty close and certainly could down the road. They were very good about it.