How to get funded by Y Combinator
Y Combinator is arguably the best seed-stage start-up accelerator in the world having invested in over 840 companies including Airbnb, Dropbox, Stripe and Reddit since it was launched in March 2005. This represents a total combined market capitalization from all of their startups of over $30 billion. It funds startups in two batches a year where the fledgling companies grow with the help of Y Combinator’s support. After ten weeks the founders pitch their startups to a hand-picked audience as part of the traditional ‘Demo Day’.
Typically YC will invest $120,000 (£76,000) in return for 7% of the company to help take it from an idea or early prototype into a startup which can then either grow organically or raise additional funding from outside investors. In this video Y Combinator’s president Sam Altman shares his thoughts on startups including why they shouldn’t be described as ‘businesses’ too early in their development, as well as shares his advice on getting into YC.