Y Combinator is a highly selective startup accelerator program that helps founders launch their companies. Y Combinator has helped launch some of the most successful companies of our time, including Airbnb, Dropbox, and Stripe. For aspiring entrepreneurs, Y Combinator is the holy grail of getting their feet into the VC ecosystem. Every year, almost 15,000 companies apply to the company. But when it comes down to it, Y Combinator has only a 1-2% acceptance rate. So, no surprise those looking to join the ranks of Y Combinator can get overwhelmed at the thought of even starting their application. How do you increase your chances of acceptance, let alone get YC to notice you? This guided article can help you navigate the application and interview process and increase your chances of standing out.
Understand the Y Combinator Philosophy
Before you begin the application process, it’s necessary to understand what Y Combinator is looking for in a startup. Y Combinator is interested in startups that are solving an existing problem in any market in a way no one has done before. They don’t mind the influence of two to several ideas on your idea – but the core of it should be unique. The second quality they look for in a startup is a strong, unbreakable team.
Y Combinator co-founder Paul Graham focuses more on this aspect because he believes that ideas might change, but founders should adapt enough to roll with them yet demonstrate unity. The third thing Y Combinator looks for is the level of insight you bring to the table and whether your target customers actually want what you have to offer. Team should be complementary and fit for the idea.
Then the market should be huge: can it be a multi-billion dollar company one day? YC is looking for clear facts and metrics, especially when it comes to early traction.
YC also looks at how founders solve a unique problem. According to Michael Seibel, cofounder of Twitch and a Managing Director at YC: “what you focus on is what you improve. Most founders don’t build great products because they focus on things that aren’t important like investors, hiring, pitch decks, tweeting, press, their peers, etc. The best founders focus on their customers, their product, and their health. It’s easier to raise money, hang with startup investors, hire employees, sling decks, tweet, get on a Forbes list, and brag to your friends than it is to build a good product. Don’t let fear convince you to focus on what’s easy. Embrace the hard task of caring for your users and you maximize your chances of success. Understand that 90%+ of founders around you won’t follow this advice. Act like the average startup founder – get the average result. At YC our core goal is to help you strive for excellence and accomplish an extraordinary outcome.”
Be direct and honest – Don’t oversell or undersell yourself.
Y Combinator values founders who answer each question to the point, back it up with facts and data, and demonstrate their level of expertise in their product/ service. Universal advice to all applicants – Cut the jargon and fluff, and stick to answering your answers straight. Avoid hiding or sugar-coating your weaknesses and get upfront about both – the strengths and challenges of your startup. Don’t over inflate what your company does, and stay away from vague, abstract language but be confident and authentic. Because Y Combinator founders and partners go through each application manually, you want to give your best shot at engaging them on the first go. In such a setup, only the most concise yet compelling answers work.
Demonstrate how you’re different from your competitors.
In order for YCombinator to consider you, you need to have a strong idea and a minimum viable product (MVP). Your idea should solve a significant problem in a unique way, and your MVP should demonstrate that your solution is realistic. Your MVP does not need to be perfect, but it should be functional and demonstrate the practical potential of your idea. Y Combinator often looks for startups that have already made some progress towards their goals and are ready to take their business to the next level. But they don’t reject a founder with a solid idea but a developing track record who can convince them. Ultimately, the company looks for founders who are self-aware, coachable, and willing to learn from their mistakes.
Show, don’t market – Back your evidence with team achievements over marketing.
Y Combinator looks for startups with committed teams. Your team should have a mix of skills and experience relevant to your company goals. Your team should showcase a clear vision for your startup’s future in every possible permutation and combination. It’s also important to demonstrate that your team is capable of executing your idea and adapting to challenges as they arise. And the best way to do this is with as much data as possible. Don’t shy away from flaunting what you think qualifies as your best achievement. For example – showing the exact number of revenue, user growth, or product experience a team member has is more effective at grabbing attention than a resume-style description.
Go through the application questions thoroughly. Then go through it again.
We cannot stress this enough. Go through each year’s questions (including the current year of application) and check previous successful applications to see how to answer and nail the process. Understand that the best have learned from those who’ve come before them. Since the YCombinator application process is highly competitive and the founder-partners are often pressed for time, you will need to stand out with clear yet thoughtful answers. You need to submit an application that outlines your idea, your team, and your progress to date. You will also need to provide financial information and answer a series of questions about your startup.
Find other YC alum and get their insights. Many of them are happy to review applications or guide people through how to approach the interview, what to expect. They may even put in a referral to decision makers at YC they know when it comes time to deciding who gets an interview.
To meet with VCs and angel investors, you can join neonVest. The network has a mix of VCs and angel investors who are founder-operators. A lot of them are YC alumni who can share their experience and help you get a better application. Join neonVest if you want to connect with them.
Show up as you are in the interview.
If, through hard work and a little luck, your application is successful, you will get invited to an interview with Y Combinator. The interview process is intense and designed to test your ability to think promptly on your feet and communicate your ideas as effectively as possible. It’s important to be well-prepared for the interview by researching Y Combinator’s portfolio and understanding their investment philosophy. You can refer to former success interviews and follow their tips. Show you can hold your own with/ without Y Combinator. Prepare to answer questions about your startup’s progress, team, and future plans. During the interview, remain confident yet genuine. Take your time to answer, as Y Combinator appreciates those who can think. A golden rule would be to listen first and respond later.
Getting into Y Combinator is tough, and even the best startups may not make the cut. It’s important to be patient and consider all the odds in your pursuit of acceptance. If you don’t get accepted, take the feedback you receive with optimism, trust that you did your best, and use it to improve your next application.
