Tales from the trenches: our Y Combinator Interview Experience(tomaitch.com)
tomaitch.com
Tales from the trenches: our Y Combinator Interview Experience
http://tomaitch.com/2009/04/16/tales-from-the-trenches-our-y-combinator-interview-experience.html
34 comments
Actually we did have a prototype of YC: we had an angel investor, Julian Weber, who gave us our first $10k, got all our paperwork done, taught us the rudiments of business, introduced us to one of our two next investors, and let us demo to them in his NYC loft.
We were very lucky to have Julian, and we would have been even better off with YC, which is a superset. In addition to all the above, you get other startups as colleagues, and startup-specific advice.
We were very lucky to have Julian, and we would have been even better off with YC, which is a superset. In addition to all the above, you get other startups as colleagues, and startup-specific advice.
Exactly, and for those guys who do not get into YC, they still have the option of getting a 'prototype of YC' - which in your own words is almost the same as YC.
I am not saying YC is bad - far from it - I am myself a big fan.
The only thing I was pointing out was that the YC interview rejection/acceptance should ideally have only as much importance as being rejected/accepted from probably another angel investor - which happens more often than not in the startup world and consequently should not be given a lot of importance.
The entrepreneurs who are in the trenches shouldnt really care as much about a rejection or two - its no big deal and even an acceptance might not be a big deal - but if you build something that people want and have something to show for it then feel free to jump over the moon.
I am not saying YC is bad - far from it - I am myself a big fan.
The only thing I was pointing out was that the YC interview rejection/acceptance should ideally have only as much importance as being rejected/accepted from probably another angel investor - which happens more often than not in the startup world and consequently should not be given a lot of importance.
The entrepreneurs who are in the trenches shouldnt really care as much about a rejection or two - its no big deal and even an acceptance might not be a big deal - but if you build something that people want and have something to show for it then feel free to jump over the moon.
which in your own words is almost the same as YC
Where did I say that? My point was that we were lucky to get a subset of YC.
Where did I say that? My point was that we were lucky to get a subset of YC.
These guys are "building a more efficient market for flights" so they might need the kinds of connections and insight YC promises. If the founders are amazing and yet they need help producing their show you assume it's all a funding issue. They're from Australia; they don't know tech angels or Silicon Valley, they know YC. Even if all they think they need is money I don't know any angels who are clamouring for unreferred new blood, do you?
Success in the flights industry can be lucrative but if you don't hit a home run you get zip. Solution: impress some knowledgeable, connected people who will be determined to help you if they like you. These guys passed, maybe they have reason to be happy.
Success in the flights industry can be lucrative but if you don't hit a home run you get zip. Solution: impress some knowledgeable, connected people who will be determined to help you if they like you. These guys passed, maybe they have reason to be happy.
To some degree I'd agree with you more now having done YC than before.
If you live in the USA and have ways of working yourself into Silicon Valley or some other startup culture, or have some other kind of access to seed funding and mentorship, then you don't need YC to succeed.
For us here in Melbourne, it was much harder. There's a few successful tech entrepreneurs from the 80s and 90s but they don't really get the web. And the angel and VC communities are tiny and unsophisticated.
Sure we could have backed ourselves, left our Melbourne lives behind and headed for Silicon Valley in the hope of finding a way to make things work. And had there not been any other option, perhaps we might have tried that, although at our age, probably not.
YC allowed us to fast-track the whole process. In the space of 5 months we went from just another unknown little startup from Melbourne to demoing our product to some of the world's most astute tech investors and being acclaimed by fellow startup founders and high-profile Valley identities alike.
That's not to say we've succeeded... we have a huge task ahead of us. But YC has helped us do in a few short months what might have taken us years any other way.
If you live in the USA and have ways of working yourself into Silicon Valley or some other startup culture, or have some other kind of access to seed funding and mentorship, then you don't need YC to succeed.
For us here in Melbourne, it was much harder. There's a few successful tech entrepreneurs from the 80s and 90s but they don't really get the web. And the angel and VC communities are tiny and unsophisticated.
Sure we could have backed ourselves, left our Melbourne lives behind and headed for Silicon Valley in the hope of finding a way to make things work. And had there not been any other option, perhaps we might have tried that, although at our age, probably not.
YC allowed us to fast-track the whole process. In the space of 5 months we went from just another unknown little startup from Melbourne to demoing our product to some of the world's most astute tech investors and being acclaimed by fellow startup founders and high-profile Valley identities alike.
That's not to say we've succeeded... we have a huge task ahead of us. But YC has helped us do in a few short months what might have taken us years any other way.
I should add that what we gained from YC more than anything else was confidence.
With what we know now, we realise we possibly could have come to Silicon Valley and successfully launched our startup without YC-backing, although it still would have taken much longer.
But we didn't know anyone who could introduce us into the culture, and we had no way of knowing how much potential we had and how reasonable it was to believe we could succeed. We weren't even convinced that our idea was a good one until YC backed it.
So I guess, if you're already confident, you don't need YC.
With what we know now, we realise we possibly could have come to Silicon Valley and successfully launched our startup without YC-backing, although it still would have taken much longer.
But we didn't know anyone who could introduce us into the culture, and we had no way of knowing how much potential we had and how reasonable it was to believe we could succeed. We weren't even convinced that our idea was a good one until YC backed it.
So I guess, if you're already confident, you don't need YC.
"if you are already confident you don't need VC"
Eterno said "do real entrepreneurs need to be less excited about this YC interview thingy." and "please stop this gushing/blogging over your yc interviews". I think his ire was targeted at the "gush" factor vs the more rational question of whether a YC acceptance would be useful (I imagine it would be).
I have some sympathy for this view point. The blog entry certainly seemed to have an element of "gush" to it, along the lines of a Biz school admission process. That said, hey if two entrepreneurs find every detail of the YC interview process worth gushing about, what is our problem? :-).
If i were ever to apply to YC (and I probably will once I come (back) to the United States), my reading is that except for the actual presentation preparation most of the other thinking should have been done while a startup is being conceived of , well before YC acceptance becomes a factor.
"How will you distinguish yourself from your competition" for example is (I would think) an obvious question entrepreneurs have to answer well before a YC interview. Preparation for the YC interview would more or less be just be figuring out what to fit into the 10 minutes I get. It should take about an hour or so I imagine.
I didn't quite get the ecstasy/depression/all-consuming preparation vibe in, for example, "We walked back towards downtown Mountain View, talking a little but not making much sense, as the intensity of the experience dissipated. As my composure returned," This sounds like someone coming down from a drug high!
In my (undoubtedly too cold blooded for some) view, PG, Trevor, Jessica etc are just very talented, nice, well connected people, not demi-gods to be worshiped or placed on a pedestal to the degree where their approval (perhaps in the form of a YC acceptance) invokes some kind of mind fogging ecstasy and their disapproval a corresponding level of disappointment, which is a bit of the vibe I got from the post.
So I understand what the OP meant by (paraphrasing) "you are entrepreneurs. Don't gush!", but hey it is your blog write what you want! :-)
Eterno said "do real entrepreneurs need to be less excited about this YC interview thingy." and "please stop this gushing/blogging over your yc interviews". I think his ire was targeted at the "gush" factor vs the more rational question of whether a YC acceptance would be useful (I imagine it would be).
I have some sympathy for this view point. The blog entry certainly seemed to have an element of "gush" to it, along the lines of a Biz school admission process. That said, hey if two entrepreneurs find every detail of the YC interview process worth gushing about, what is our problem? :-).
If i were ever to apply to YC (and I probably will once I come (back) to the United States), my reading is that except for the actual presentation preparation most of the other thinking should have been done while a startup is being conceived of , well before YC acceptance becomes a factor.
"How will you distinguish yourself from your competition" for example is (I would think) an obvious question entrepreneurs have to answer well before a YC interview. Preparation for the YC interview would more or less be just be figuring out what to fit into the 10 minutes I get. It should take about an hour or so I imagine.
I didn't quite get the ecstasy/depression/all-consuming preparation vibe in, for example, "We walked back towards downtown Mountain View, talking a little but not making much sense, as the intensity of the experience dissipated. As my composure returned," This sounds like someone coming down from a drug high!
In my (undoubtedly too cold blooded for some) view, PG, Trevor, Jessica etc are just very talented, nice, well connected people, not demi-gods to be worshiped or placed on a pedestal to the degree where their approval (perhaps in the form of a YC acceptance) invokes some kind of mind fogging ecstasy and their disapproval a corresponding level of disappointment, which is a bit of the vibe I got from the post.
So I understand what the OP meant by (paraphrasing) "you are entrepreneurs. Don't gush!", but hey it is your blog write what you want! :-)
Why do you feel you need Silicon Valley / culture / mentorship etc?
If you have a good idea, just do it. Doesn't really matter where you are if you have the determination to succeed.
If you have a good idea, just do it. Doesn't really matter where you are if you have the determination to succeed.
I live in Europe and there's not much in the way of concept level funding here. I completely understand the OP -- having any help, let alone a few months of funding, the mentorship and Demo Day is definitely worth getting excited about, especially if you're not already in a hub area.
On a funny note: We just had TechCrunch party here in Prague over the weekend, and it was like an AA meeting. No investors, just startups pitching to themselves and consoling themselves. When you're starting you take all the help you can get. So don't tell me about it doesn't matter where you are -- it matters.
On a funny note: We just had TechCrunch party here in Prague over the weekend, and it was like an AA meeting. No investors, just startups pitching to themselves and consoling themselves. When you're starting you take all the help you can get. So don't tell me about it doesn't matter where you are -- it matters.
It matters if you let it matter. If you feel you need to go the whole Angel->VC schmoozing route, then definitely location matters. But there's a lot of other ways to get started.
It matters if your business is the type that can't prosper on determination alone. That kept us going for 6 years. Eventually we needed money and a supportive environment.
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That's like saying "Thomas Edison didn't go to college, so nobody should be excited about going to college".
YC is in the business of creating entrepreneurs, which I'd expect most people here would agree is a noble (and profitable) cause. You don't have to read the interview writeups if you don't want to. :)
YC is in the business of creating entrepreneurs, which I'd expect most people here would agree is a noble (and profitable) cause. You don't have to read the interview writeups if you don't want to. :)
I'm occasionally irritated by this cliquishness, but it's all about access, access, access. Anyone can apply.
The fact that YC exists now, and the fact that it gets the attention it does make the YC brand a great one to be associated with if you are looking for investment.
The founders you mentioned didn't need YC, but if they were doing it again today, are you saying they wouldn't derive any benefit from applying to YC?
Also, blogging about a YC interview may be a way to get alternate funding back home. For instance, I got a job interview (in Toronto, Canada) in the mid nineties in part because I had interviewed at Microsoft, in Seattle. I didn't get the Microsoft job.
The fact that YC exists now, and the fact that it gets the attention it does make the YC brand a great one to be associated with if you are looking for investment.
The founders you mentioned didn't need YC, but if they were doing it again today, are you saying they wouldn't derive any benefit from applying to YC?
Also, blogging about a YC interview may be a way to get alternate funding back home. For instance, I got a job interview (in Toronto, Canada) in the mid nineties in part because I had interviewed at Microsoft, in Seattle. I didn't get the Microsoft job.
Access helps. But one thing I've realized is that everyone (well, almost everyone) is knowable if you're willing to make the effort. A little confidence, and a little intelligently done networking will open most doors you're looking for. YC is a great opportunity, but this is a good thing to keep in mind regardless of whether you get in. They can only give you so many shortcuts. Eventually, you'll have to do the heavy lifting yourself.
Todays landscape is vastly different from when MS and Apple were founded. Even Google for that matter.
In reading through most of the YC-funding companies, it seems they cater not only to Web-type startups, but also very young (on average) founders.
If you've been doing startups for a while, you don't need YC. If you're new to the whole starting/operating a business and raising money, it would seem to be a very valuable relationship. I learned most of the lessons that YC-funded founders will learn along the way. But I did it on my own, and at a cost of about $500K of my personal money when I was in my 20's. I would have gladly given up a few % for the money, and most importantly the advice and experience.
In reading through most of the YC-funding companies, it seems they cater not only to Web-type startups, but also very young (on average) founders.
If you've been doing startups for a while, you don't need YC. If you're new to the whole starting/operating a business and raising money, it would seem to be a very valuable relationship. I learned most of the lessons that YC-funded founders will learn along the way. But I did it on my own, and at a cost of about $500K of my personal money when I was in my 20's. I would have gladly given up a few % for the money, and most importantly the advice and experience.
I always understand YC as an iconoclastic force (being disruptive etc), but its own success means inevitably it will become something of an idol.
Make sure you think and talk about your idea so much that you understand it so intimately and can visualise it so vividly that you get really excited at the thought of it succeeding. Talk to as many people as you can, and learn what you have to say and how you have to say it to get people excited at the thought of how much better the world will be once your product exists.
Brilliant! Congratulations on your successful first step!
Brilliant! Congratulations on your successful first step!
Interesting? Do YC refund/pay for flights? I'm thinking return tickets to SF, plus say 2 nights in a hotel for 2 is probably coming close to $5K(AU$). That's a pretty significant chunk of the seed funding that YC gives you.
On that note though - congrats guys - always great to see some Melbournians doing great stuff on here.
On that note though - congrats guys - always great to see some Melbournians doing great stuff on here.
We actually stayed for 11 days - we weren't going to fly all that way with the possibility of being unsuccessful, only to return immediately without having any fun.
But we did it on the cheap, and you're in the ballpark with the cost. YC reimbursed us USD $700 like everyone else.
Yep it was a big punt, but totally worth it.
But we did it on the cheap, and you're in the ballpark with the cost. YC reimbursed us USD $700 like everyone else.
Yep it was a big punt, but totally worth it.
An amazing story, congrats to both of you. I do think your long time friendship (and 6 years in business together) gave you and will continue to give you an advantage. That's even apparent from your writing and I'm sure it emerged through the interview (such as when your friend "rescued" you and viceversa). Good cofounders are rare. Good luck!
Congrats! Did you guys move back to Melbourne after Y Combinator?
We're back in Melbourne now, planning to return to the Valley in a couple of months and bracing ourselves for the immigration minefield.
May I know what do you have to do to get working visa in the states? I am having the same problem right now. I am currently now in US on student visa.
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"I was already so convinced of how much better our product was than our competitors I’d forgotten the specifics of exactly how it was better in a way that could easily be explained to someone else."
I have this experience all the time (not just in this sort of situation). Thanks for telling us about it!
I have this experience all the time (not just in this sort of situation). Thanks for telling us about it!
What happens if you're building an extremely complicated product (not web app)? Is a demo still required?
Nothing is _required_ but lack of a demo will make it much harder to convince an investor that your team gets the market and can build the right product, especially in 10 minutes. You'll have to compensate for that somehow.
If it's a hardware gadget, can you produce renders of the device and mockups of the UI? How have you been able to convince others so far?
If it's a hardware gadget, can you produce renders of the device and mockups of the UI? How have you been able to convince others so far?
We had an old demo but we have since revamped the entire architecture. Would a video suffice?
"Required", "suffice". It seems you're looking for guarantees where none are possible. Think in terms of increasing your odds.
IMHO, a good demo can help you sell. You're selling your team. What can you do to help yourself convince investors that you are smart and can execute?
IMHO, a good demo can help you sell. You're selling your team. What can you do to help yourself convince investors that you are smart and can execute?
You guys are adiso or something, right? My wife just used you to find a flight
Thanks so much. This helps us immensely.
Link goes to a 404 Not Found :/
If you care so much for third party approval from PG and folks (not that they are not nice/smart ppl) but then just go to a B-school dude and get that nice degree which will surrogate for your competencies in the real world.
BillG didnt need no YC, neither did Google guys and neither did the ipod god - infact even PG didnt need no YC, so please stop this gushing/blogging over your yc interviews as if they are like the biggest thing to happen to your entrepreneurial careers. Its beginning to sound almost like a b-school interview and I wudnt be surprised if YC starts attracting the entrepreneur wannabes for the 'stamp' that they missed from going to a b-school.