I've been rejected from Y Combinator 3 times. Here's why
jon.surfscore.com
jon.surfscore.com
One thing YC has taught me is that this must be true of practically every application process. For some reason, both the people who are accepted and rejected in any application process tend to read too much into it. (Is there a name for this phenomenon?)
- http://en.wikipedia.org/wiki/Spotlight_effect
- http://www.psychologytoday.com/blog/the-big-questions/201111...
We humans tend to assume that everyone sees something about us, when a much smaller amount actually notice (and an even smaller amount actually care). This has rejected startups thinking "What did I do" when it really has nothing to do with them at all (just that someone else was better).
When we read your essays, you kind of open up a window to your mind and thought process. Process being the key word. It would seem that there is a methodology to what you do and do not necessarily 'wing it'. So therefore, people would certainly think that process applies to them when you decide their 'fate'.
As for YC being an oracle, it is a great brand that will almost certainly do more good than harm for startups to be associated with it.
If you really wanted to avoid the emotional consequences of this decision, you could make it completely random. It would be not only stress-relieving but an act of humility given the truth: that you will never be able to predict the success of these companies.
You have a peice of information they do not: you know that it's nothing personal. But if you tell a reject that it isn't personal there are two scenarios that are most prominent in their minds: that you tell the truth, or you're trying to make them feel better while there is something subtle wrong about themselves that they can't find. The latter option has much more weight put on it because the consequences are more dire. If they have two options with equal probabilities, as far as they know, but with one result being far more devastating than the other, it would be stupid to neglect this possibility, because what if it's true? If this was tribal warfare this could mean life or death, people aren't just going to believe your words.
However, re-applications are definitely dinged, or so I've heard from reading books/articles about the admissions process.
" Men at some time are masters of their fates: The fault, dear Brutus, is not in our stars, But in ourselves, that we are underlings. " - Said by Cassius in `Julius Caesar' Act I, Scene 2
I guess it's a different mentality, and some people get the same thrill out of the entrepreneurial game that I do from writing code. Anyway, looks like some interesting conclusions came from the story, thanks for sharing.
As a coder, I always encourage non-technical people I meet to learn how to code, so I don't find the idea of a non-technical person trying to learn to code at all a negative aspect of the tech scene.
And I have no problem with non-technical people, or anyone learning to code, I just thought it odd that the startup idea was for a non-coder to learn programming in order to 1) teach it to others, 2) ?, 3) profit.
This is certainly not universal, but it seems like a bunch of YC funded startups exist solely to attempt being acquired. I understand that 'exiting' is a marker of some form of success, but doesn't this notion sort of contradict some of the hacker mentality and startup culture that created it in the first place? I mean, you just poured your heart and soul into a company for the past several months, if not years, and you're just going to let some mega corporation purchase it and grow even larger? And yet the vast majority of these companies just sit there and eat through their funding... what's the point?
It really feels like the web bubble all over again, but like I said, maybe I'm just missing something.
We seem to have this discussion too much. Startup culture is business culture. Hacker culture (making and breaking) to me almost seems diametrically opposed to startup culture (making and selling). Startups don't want to reinvent the wheel so much that they rely on the big guns (Apple, Google) to do the foundation work (e.g., making an OS). Twenty to thirty years from now, who will know how to make an operating system. College students online lament that there are no challenging programming jobs anymore so they can't use the deep knowledge from their CS degree. It seems to me that the most challenging stuff that you can make a lot of money from today is a Mac application. My dream is to see a resurgence of MIT and Unix hacker culture.
I know my writing style is disjointed and awkward, so sorry about that :P
Our startup (LightSail Energy) is currently among the best poised to change how the world gets its energy. Investors agree; our startup is currently valued above $100MM, with Peter Thiel, Bill Gates, and Khosla Ventures among those who have invested. So things are going well.
Paul's essays, advice, and YC really did help me get started. But people should remember that the road doesn't stop there. Success is self-determined.
Also, we were pre-prototype, and I'm not even sure if we had revealed our secret sauce yet (important, because we had to patent it).
At the time, it was a compressed air powered scooter that was to be the product.
Note: I applied three times. I think YC was right to reject the first two, as suboptimal ideas, further sub-optimally suited to still further sub-optimally configured teams (Paul rightly surmised that I was grabbing whatever resources at hand to complete some kind of made dash across the Antarctic).
The last application was for a proto-LightSail Energy. We didn't have much and it was an even bigger project than the first two, which, it should be said, never went anywhere notable. If I were YC judging DaniFong circa 2008 applying with LightSail, I'd wonder if she'd ever make it happen, and gently encourage narrowing the scope of the problem. Which they did.
PG and Trevor Blackwell wisely suggested that we consider industrial applications, which turned out to be half right -- nobody really needed to replace industrial air compressor, but many places needed energy storage (e.g. islands reliant on expensive liquid fuels for power, renewable energy developers held up by transmission infrastructure or volatility saturation).
The size of this market -- literally in the billions, somehow eluded us in the early phase because it just wasn't visible -- we seldom think of how we get electricity, it seems like a practically natural resource for us hackers.
Vinod Khosla and his partner Ford Tamer finally got through to us. Ford dutifully sat through the first presentation, but kept coming back to (at every slide!) how this might be useful for the grid. Steve says he made the most important decision in his career, said "we'll get back to you," and we made the decision to rewrite the whole business plan on the drive back. Two weeks later, we engaged with Vinod and Ford together, and after a lengthy period of due diligence we raised capital.
The basic reasoning -- that it was unnecessarily difficult to try to make a compelling mass produced vehicle and invent a new power train technology, took time to dawn on us. We were somewhat blinded by the sexiness of many of the electric car startups of the time, and had the impression that, with the money for YC to hack together a slick and basically functional scooter prototype, that money would flow.
The advice -- and acting on it -- spared us. The disasters that were at that very time befalling Tesla Motors and its now clearly less fortunate ilk were evidently well known on Sand Hill Road, but not to us. Focusing on stationary applications was incredibly important for us at that time, and I'm glad we had a chance to switch.
Still, the dream of an air powered vehicle floats above us.
---
I should also say, over and over again YC supported me (and thus us as a team.) They connected me with a cadre of super fantastic entrepreneurs (one of which I consulted for, providing the necessary funds to keep going), hosted the amazing and free startup school, hosted this amazing community, and provided the essay example I needed to start my own site, which really launched my professional identity. I posted my essays on HN, where, read by a few fellow entrepreneurs, I both found housing (provided in exchange for my cooking dumplings!) and through a couple more links, my cofounders Steve and Ed.
I have zero sour grapes; YC has been awesome to me.
My only interest is in mollifying the sting of rejection. The YC process is by nature and necessity fallible.
Of course PG himself mentions this in his own writings, describing AirBnB as a strange kind of bad seeming idea, Dropbox as another one of those iDrives that never took off, and describes how people shouldn't read too much into things:
http://paulgraham.com/randomness.html http://www.paulgraham.com/judgement.html
However! I still felt rejection strongly and painfully, at least the first two times. So if folks were reading this, have heart.
---
I dearly hope that this won't be taken the wrong way. The YC application process launched me, and countless others. Nothing's perfect. But for every one person they dissuade or distract, 99 must have been launched, just like me.
The closest I'd get to vehicles would be something like a supercharger station -- absorb power from the grid at night (or from solar panels), lightsail it, and then dump 480v into a Li-Ion Tesla in an hour.
We applied to YC at the time as a flier. The money would have helped a bit at that point, but also I felt it would be good to give YC the first look.
I don't buy the "do whatever your passion is" bullshit. I just don't. I think that people that win are people that WANT to win. Of course, some times you see some guy who's passion was building boats all his life (or something) and he happens to get on CNN and get some major coverage and his business booms (when he's like 60); my argument is that those are largely exceptions.
If you want to win, you need to focus on winning (like the OP is/was doing). Winning in the start-up world is largely contingent on two things: VC and media coverage. YC can bring both home. I see absolutely nothing wrong with OP's attempt to enhance his application (heck even "leveraging" a woman co-founder is fair game).
Here's a (somewhat poor) analogy: I have a large number of friends that go to law schools (or have already graduated). In many cases, the most ambitious ones will not even consider a sub-T14 school. If they don't get into a top law school, what's the point of paying for a degree and practicing law at some sub-par firm?
Of course, the romantics in us don't really appreciate this cold-hearted realism (if you really really like law, you can succeed! see Erin Brokovich!) But real life doesn't work like that. YC is, in many ways, prime real-estate for new start-ups. I see no reason why you WOULDN'T cater your application and idea to trying to get in. Heck, that's exactly what people to do when trying to get Fullbright scholarships, Ivy league acceptances, etc.
I was fairly explicit: VC and media coverage. YC is much (much) more than a feather in one's cap. Most astute start-uppers understand that exceedingly well. That's why YC is so competitive.
The narrative here is "I want to succeed/win, getting into YC is going to help me, therefore I must get into YC and I'll do whatever it takes even though every time I've tried so far I've failed." The seemingly obvious question here is: what are you trying to succeed/win at? It obviously wasn't a product you're passionate about (although going into the fourth try, it sounds like the latest pivot is growing on you). Fame, power, money, personal validation? 2.3 kids and a white picket fence? YC isn't the only way to get it, and it's probably one of the harder ways to do it.
If it's common to treat YC as a Harvard MBA—something like "if I have it, everything in life will almost magically work out for me"—that's pretty interesting and surprising to me. I always thought it was more about speeding up getting a specific vision or idea to market, or at the very least iterating on an idea until it grows into something huge.
Yes it can, but being funded by YC isn't the only way to accomplish these goals, yet the author makes it seem like that is the only validation of success they will accept.
I completely agree with you that the people that win are the ones that want to win, but winning isn't getting into an incubator, it is shipping a successful, profitable product. The author needs to re-frame their metric of success because they don't seem to have a goal of making the product they are working on successful, or rather, they seem to think their product's success is dependent on them getting into YC.
The difference between your law school analogy and YC is that people actually care about what law school you attended. When it comes down to it, your customers are unlikely to care that you are a YC funded company, they end up caring about your product's value proposition.
I don't really see what would be "winning" here and I think the whole concept is weird, so your Glengarry Glen Ross angle just seems satirical. But I think you're being serious.
It looks like the OP finally realized that towards the end, but is the first part a common way to approach YC, where it's an end in and of itself? If so, is the central idea that "well, now that I've been a part of YC, everything will just fall into place"?
1) The "threaten to show up on YC's porch until you get an answer" thing is seriously a bad idea. I probably wouldn't have let alone know about that even jokingly. I mean, "football player waiting outside your door until you give him an answer" is inherently threatening. You probably didn't mean it this way, but I can see people being concerned.
2) Why do you want to try to sell to schools? From what I see of the product, it looks like something a programmer-parent would be more likely to buy for his kids, which is a quick $20 sale with no hassle, vs. the long and drawn out sales process to a school district. I hate kids, but if I had them, I'd definitely be looking for applications like this to get them thinking logically and like a programmer from as early an age as possible. Yes, a school would be a lot of units at once, but much more hassle.
The good thing about selling to parents is that once you sell one product, the kid will continue to grow, and the parents are likely to buy additional products from the same company (if you keep moving up in age along with the kids). Sell things to 3-5y to start, then move to 5-7, then 7-11. This is largely what made J.K. Rowling rich -- her first books were perfect for one cohort, and kept moving up with them in sequels. Kids can start at the appropriate stage later on.
The YC company "tutorspree" has some interesting stories about parents who really care about their kids, and spend substantial money on their education -- as do any tutoring programs. (I know people who spend $120k/yr for a Mandarin-speaking nanny for their kids in California.)
3) From the public info here and your iPad app, it's not bad. I don't know about 70th percentile. If you figure YC gets 3k apps/yr, and interviews 150 (5%), and accepts 50 (1.5%), then 70th percentile is not ideal. But there's probably both a huge amount of variance how things are evaluated by different people, and maybe some variance year to year (like, if there's a super-successful Bitcoin company, a lot of investors will go for a Bitcoin company again which they might not have before; not sure how YC is about that.)
YC is not some kind of beauty pageant and it's not a make or break situation for your business. Posting up the rejection letter in your office? Don't be obsessed with Ycom. If you make it, that's great, you can get a lot of good resources and you've essentially got the seal of approval from angel investors. If Not? No big deal! Build the product, bring it to market, get active users and make sure that it's a profitable business that can stay profitable even at a scaling point. If you do this much, you'll get good attention and will find yourself raising seed money.
It doesn't seem surprising that someone with an entrepreneurial drive but only an embrionic vision would want to join the cool kids club. I mean, you gotta do something with your life even if you don't have a grand vision.
Has there ever been a write-up on "how to get into YC" by someone who followed such a guide and got in?
- Someone who was rejected 4+ times, and doesn't believe in that kind of stuff anymore
I'm thinking about doing something like that, but it would be about helping people avoid false negatives (which make YC's decision-making harder, by obscuring/defacing otherwise great applications), rather than helping bad people or even marginal people get into YC when they otherwise wouldn't.
There are a lot of things you can do to make it less likely you'll get into YC. Not doing those things is the first step. It's the "do this and you'll get into YC" is much more concerning, because if there were exploits to the process, they would harm the set of YC companies, and if they were widely used, they'd rapidly be "patched".
In case you did not get the reference, the story of Rudy is a famous, sensationalized true story of the power of perseverance.
I'm learning this now. We've been working this idea over for months so we think we know it. And sure we've talked to customers, but we have not focused on rigorous customer development.
All I can say know is if you are getting started on an idea start with customer development, do it early, do a lot of it and actually learn to get good at it. It's everything when you're talking to investors or customers. It helps define all the fuzzy details of your product and business model. It helps determine distribution, positioning, marketing and yes features.
Do not underestimate this part.
...so get to it. The past 3 seasons you spent trying to get into Y Combinator you could have spent building a base of customers.
The OP is lucky they finally figured this out and shipped regardless of YC.
Getting VC or getting in YC can be great, but plenty of great businesses are built by people just putting their head down and building stuff.