Asked By: Oliver HuntUpdated: 4th March 2021

Why is Y Combinator so successful?

Category: OccupationViews: 281
The reason that Y Combinator alumni like Airbnb and Docker are so successful isn't because YC teaches you Jedi mind tricks or because it gives you access to an elite network. It's simply a result of the age-old equation: smart people + focus = good things.

Moreover, what does Y Combinator do?

Y Combinator provides seed funding for startups. Seed funding is the earliest stage of venture funding. It pays your expenses while you're getting started. Some companies may need no more than seed funding.

Additionally, how does Y Combinator make money?

Y Combinator is a "Startup Incubator" that has also morphed into a seed fund for startups. The business model fo Y Combinator is pretty simple. These companies are then either acquired or go on for an IPO, when Y Combinator sells this stake (makes an exit) for cash in the market. This is how they generate revenue.

How do I join Y Combinator?

You must have at least 10% equity in the startup to be considered a founder by Y Combinator. Only founders can come to interviews if invited or attend batch events if accepted.

Who is the CEO of Y Combinator?

Michael Seibel

What percentage does Y Combinator take?

Since 2014, YC has invested $120,000 for 7 percent equity in its companies. It has increased the size of its investment before — in 2007, a YC “standard deal” was just $20,000 — but the amount of equity the accelerator takes in exchange for the capital has been consistent.

Who owns Y Combinator?

In 2014, founder Paul Graham announced he was stepping down and that Sam Altman would take over as president of Y Combinator. That same year, Altman announced "The New Deal" for YC startups, which offers $150,000 for 7% equity.

What is Y Combinator worth?

Its mission to mint new startups is copied by hundreds of accelerators around the world. YC says its portfolio is worth about $80 billion 1 with more than 50 companies worth at least $100 million and several above $1 billion, such as Airbnb, Dropbox, and Stripe.

What time does Y Combinator call?

The rule of thumb is that if you're accepted after your interview, you get a call from the Partner interviewing you by 6–6:30pm that day. If not, you get an email rejection from him after 7pm.

How many YC startups fail?

The most comprehensive list of YC startups I know of is . Of the 1280 YC startups it records, 139 (11%) are dead. 83 companies had some sort of exit, which can range from huge price tag acquisitions to tiny acquisitions designed to save face.

What does YC backed mean?

Y Combinator created a new model for funding early stage startups. Twice a year we invest a small amount of money ($150k) in a large number of startups. Each cycle culminates in Demo Day, when the startups present their companies to a carefully selected, invite-only audience. But YC doesn't end on Demo Day.

Is Y Combinator an incubator or accelerator?

Y Combinator (YC) is an American seed money startup accelerator launched in March 2005. It has been used to launch over 2,000 companies, including Stripe, Airbnb, Cruise Automation, DoorDash, Coinbase, Instacart, Dropbox and Twitch.

How hard is it to get into Y Combinator?

I've often heard the stat of it's harder to get into YC than it is to get into Harvard or Stanford —according to a 2015 Fortune article, YC had an acceptance rate of 1.5% (7000 applications, 106 spots) compared to Stanford's 5% acceptance rate.

How long is Y Combinator?

three months

Does Y Combinator accept ideas?

They only accept fundable ideas. Also, by the time you get to YC, you can fully leverage their fund-raising assistance, if you do your homework. You only have 3 months to be at YC. Why is Y Combinator the best-known startup accelerator?

Can you apply to Y Combinator with just an idea?

Q: Can you apply to YC with just an idea? Yes. We accept companies at a wide range of stages into the batch. Cruise, for example, had been working on their idea for just two weeks when they applied to YC.

How many applications does Y Combinator get?

How many people apply to Y Combinator each cycle? Based on who you ask, I've heard it fluctuate from 500 - 5000 applications per cycle. For context, Techstars gets ~600 applications and our accelerator gets ~700 applications. However application counts are vanity metrics.

What is Y Combinator Startup School?

Startup School - The Best Resource for Founders. Learn how to start a company, with help from the world's top startup accelerator - Y Combinator. Startup School is a free online program and global community of founders. Keep track of your startup's progress with weekly updates and get ready to launch your product.

How did Y Combinator start?

Two of Graham's friends, Robert Morris and Trevor Blackwell, gave the couple $50,000; Y Combinator began with $200,000. The original name for the Grahams' fund was Cambridge Seed. It was quickly changed to appeal to startups everywhere. Y Combinator was modeled after Viaweb's investor, Julian Weber.

Where is Y Combinator located?

335 Pioneer Way, Mountain View

What is a safe investment round?

A SAFE or safe stands for a “simple agreement for future equity”. The investors invests money in the company using a SAFE. In exchange for the money, with a SAFE, the investor receives the right to purchase stock in a future equity round (when one occurs) subject to certain parameters set in advance in the SAFE.

How does a post money safe work?

With Post-Money SAFEs, in order to valuate ownership and dilution, you remove the theoretical increase of shares to the company option pool from the equation and instead take into account the convertible securities (principally, SAFEs and convertible notes) issued by the company.


combinator, startup, incubator, startups, accelerator, funding, equity, investor, silicon, accelerators


68% users found this page useful, click here to vote.

3.4 / 5 based on 5 votes.