It's a very interesting model because as a SaaS getting the first enterprises to sign up is extremely hard, yet those add enormous equity value and provide the proof and case studies for growth at scale. It's quite encouraged to buy from other YC startups and test out their tech as alpha customers because it increases the valuation of the YC network (including your own company). Not a good deal.Īlso, if you live in the bay area, it's fairly easy to come across most YC advice and get investor intros just by going to enough house parties with seasoned founder attendees.Įveryone in YC sells to each other. Nowadays you'll have to waste half your summer having coffee, not have guaranteed investment, and still give away 7%. I don't think that applies anymore, sadly, with the large batch sizes they accept now. Being able to get twice as much work done in return for 7% was a good deal. If it weren't for YC one would have to spend 50% of their working hours having coffee chats and preparing demos, since investors generally had their own contorted idea of what a good demo is before they would invest, and it was usually not what the customer wanted. Prior to S16, this was probably even more true. Almost all companies got investment, since YC was extremely selective back then (batch sizes were much smaller) and investors generally trusted YC's judgement. I think the greatest value add was actually being able to work heads-down for 3 months knowing that you would almost certainly get investment on Demo Day.
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |