We realize this process is fraught with error. It's practically certain that groups we rejected will go on to create successful startups. If you do, we'd appreciate it if you'd send us an email telling us about it; we want to learn from our mistakes.
Thanks,
Y Combinator Staff
http://en.wikipedia.org/wiki/Rejection_Letter
This falls in the not-very-good category of "mass printed letter".
I greatly appreciate Y-Combinator taking the time to review our app, because if I'd accepted "we're not ready" as a reason to not apply at all, then there's a good chance I'd have abandoned the idea of starting a business altogether.
Time for Plan B. Powerball tickets. Er, I mean, the slowly growing micro-ISV approach.
$10-$15K is the difference between being able to quit my day job and get the company going in 3 months and having to keep my day job and get the company going in 9 months to a year.
And if I need to keep the day job, slow sustainable growth -- meaning I can project income, and project reasonably accurately when I can quit my day job -- is much better than a spike that I need to deal with in crisis mode.
neurokinetikz.com
http://webbyawards.com/webbys/current_honorees.php?category_id=48
I know it sucks to be rejected (went thru it recently myself) but don't fall into the trap of sour grapes.
Find out what you can do better, or improve on.
And I think this is probably a good forum for doing that.
And there are tons of other ways to make money, if you are smart enough to build a startup.
Surely is nice to have somebody written you a $10,000 check to start of with... but believe me, you will never forget the moment you received the first payment from the credit card gateway company.
It is better if you can grow your business with your own money, if you have a choice.