Comment by dotBen | Hacker News Reader

Comment by dotBen | Hacker News Reader

I've not had a negative experience with YC because I've chosen not to apply, for a specific 'complaint'/'issue' with the program. Not sure if that falls within your interest for this request, so apologies if not.

First off, I want to just say thatI think YC is a very good program for younger developers and/or those who know the problem space they want to develop in but haven't quite worked out the firm business model.

However, my negative experience with the program is that I think the funding for the equity you give away is a very poor deal for founders. $20k/$6k a founder doesn't last long and it seems to me that you could raise similar/more money on much better terms elsewhere.

Sure, you get the incubator program as the 'meat' of the investment but it's like saying working at Google is best because you get the wonderful free lunches... I can get better job + pay elsewhere and sort out the lunches on my own (read: where 'lunch' is the network, connections, feedback on my startup, that YC offers... others can provide that too etc).

I'm expecting this will get down voted because most people here are very pro YC. I am too, I even went to Startup School last weekend. I just wouldn't want to take funding at YC over other angel and seed routes at a better valuation (or even better, delay valuation entirely and take a note instead).

it's like saying working at Google is best because you get the wonderful free lunches.

Getting the network, connections, feedback, and exposure is more difficult for most founders than getting lunch is for most Googlers.

It may be that you have the connections problem sorted out and not the money problem. I have money sorted out but I need more connections and feedback, which I think is more the type of founder seed programs are built for.

YC's equity take isn't set in stone. That's why they specify a range. If you're experienced, connected, resourceful, and/or awesome enough to attract similar value for less equity elsewhere, you can negotiate the terms. Hipmunk did.

As for your job/lunch comparison, I'd argue that YC's network, connections, feedback, advising, alumni network, speakers, etc. are the "job" and the money they give you is the "lunch" rather than the other way around.

Lastly, YC is an accelerator, not an incubator, which I think is an important distinction for anyone reading this thread and considering applying. You don't work on-site at YC. You work in your proverbial garage.

I mention these things because they might help friends, acquaintances, and others who are still considering applying.

The money is probably the least valuable thing we've gotten out of YC. When we came here, we had no network and no connections to the valley. As part of YC, we've gotten:

1) Contacts - we can sit down with just about anyone we can think of.

2) Alumni - the YC alumni network is pretty huge and the alums have been super helpful. We've gotten advice, design feedback, encouragement when we were having darker days, and we've used them as product guinea pigs.

3) Brand name - being able to say "We're a YC company" makes people instantly pay attention to you.

4) Advice - yc has seen a whole bunch of startups. They were able to to save us from going down a bunch of bad paths, even when we didn't want their advice. It's hard to quantify, but I feel like I have a better understanding of how to build something that people will actually use because of yc.

4) A support structure - Office hours with pg, jl, harj, et al are indispensable. These are now available to us forever.

Before getting accepted into yc, my cofounder and I had a bunch of discussions about how much of the company we were willing to give up. We were nervous and thought the upper bound (around 10%) seemed really high. In retrospect 10% would have been a totally reasonable price to pay for what we've gotten in return.

When we came here, we had no network and no connections to the valley

Do you think that translates to "YC is more optimal if you are not currently located in the Valley"?

BTW: what is your startup, it's not in your profile!

I think it was even more helpful considering we weren't already in the valley, but I think most of the benefits apply even if you are already here. This is from asking much more established co's. FWIW we were coming from NYC.

Our startup is HireHive. Totally forgot to put it in the profile.

disclaimer: no YC experience either. yet i applied for this round.

to me is seems that the ~7% the founders give, yields them more then ~30k + events + coaching + incorporation.

in my view: YC'inng makes the startup (and even any of your future startups) so much more attractive and exposed to potential investors, that this alone justifies the ~7%.

but i have no metrics for this :-) someone?

(i leave out the 3 months that founders "have to" invest as that is something the "have to" invest in order to starup anyway)

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