The Secret That Silicon Valley's Top Investors All Share

Demo day is right around the corner. What do VC firms think of Y Combinator? Dalton and Michael reveal what's really going on behind the scenes with firms like a16z, Sequoia, Founders Fund, and the hundreds of others that invest in YC companies.
The data reveals the truth - top investors have stakes in the biggest YC successes. Discover why Y Combinator is a secret weapon for VCs to find promising startups. This video will also teach you to recognize the hidden dynamics that fuel VC motivations so you can make informed decision when fundraising for your startup.
Apply to Y Combinator: yc.link/DandM-apply
Work at a Startup: yc.link/DandM-jobs
Chapters (Powered by bit.ly/chapterme-yc) -
00:00 - Coming Up
00:21 - Intro
01:34 - Stats
02:28 - Why They Invest
04:32 - The Purveyors
05:24 - First Check
08:15 - Seed Funds
10:08 - Bad Advice
11:00 - Wrap Up

[@GabrielSestrem]

To all founder over there. If you are bootstrapping, try to survive as much as you can. VC money isn’t free and it’s also easy to burn a lot more money when you are not bootstrapping.

[@sualaosman1405]

It’s Micheal’s style of ending chats is what am always waiting for? Great chat!

[@chapterme]

Chapters (Powered by ChapterMe) - 00:00 - Coming Up 00:21 - Why The Best Investors Secretly Love YC 01:34 - YC Investor Stats 02:28 - Why They Invest 04:32 - Analogy: The Purveyors 05:24 - Being The First Check 08:15 - What About Seed Funds? 10:08 - Bad Advice: Are They Offering To Invest? 11:00 - Wrap Up: Look At What People Do Rather Than Say

[@minaraver]

IDK who is questioning the value of YC, but it's not founders. Everything you just said is why tens of thousands of early stage iteration cycles ebb and flow around YC application deadlines.

[@HorizonXP]

Folks that are railing against this video and VC funding in general. That’s great for you! If you’re running a company or bootstrapping, don’t do YC or raise funding. You’re right that it’s not free. But if you truly want to do a startup, which means you’re building something people want, and you need explosive growth and scale to win, YC and VC are probably a good idea. Can you do without? Of course! But if you’d rather save 5-10 years, you probably shouldn’t skip YC/VC. Time isn’t replaceable. Money is.

[@derek-yap]

Appreciate the real talk 🙏

[@mPajuhaan]

When investors talk about the high YC's valuation, what multiple are they referring to?

[@Yotrek]

Revenue multiples.

[@mdsayemsaif4130]

Hi Y combinator team, I have a idea and have the prototype also but don't know from where to get an investor for my startup and I am trying to reach them but they didn't respond (through mail). And i am registering myself to the Yc application for startups too. How to start?

[@dukensonguerrier5369]

Build an MVP, release MVP to market, gain traction and attn, then the investors will come to you. From what I learned building a successful startup isn’t the result of strict adherence to rigid steps. In other words, dont think of investment like sort of box to check. Launch fast, fail faster, iterate, & focus on your customers & the value you bring. Easier said than done tho. Seek investment if it’s absolutely necessary.

[@mdsayemsaif4130]

@@dukensonguerrier5369 yeah. But I need the investment because I am manufacturing the product. I have built the MV and working on market the product. But I have only one piece of that. Investment is necessary to me because I am studying right now and didn't have anyone's support. Hope you will understand.

[@stanfordyu8829]

In stead of focusing on whether it’s self promoting, why not focusing on if they are saying is true? No one talks about the facts 😮

[@amycruz0x]

❤❤

[@smartis7404]

So the chances for entering YC is 1%

[@stevesteve6502]

Yay self promo video. Let me take a wild guess based on the last video and this... there was a meeting among the YC execs and you guys decided integrating more YC marketing would yield you more applications, more rev. The last video juxtaposed the worst investor stories with how YC is so different and founders are in control--I ended up skipping past the YC promo sections because it was the stories that were interesting content. I think you should understand that this sort of explicit advertisement is off-putting on a subconscious level and nowhere near as well-received as the videos just detailing the often humorous personal experience and accumulated advice/wisdom which implicitly promotes YC. This isn't as terrible as some absurd Hype video you'd see from influencers or the like, but we're starting to veer in that direction. Have your AirBnB a/b testing specialist confirm what I'm saying :)

[@vieskip]

They’re a business at the end of the day, it’s nice to see them actually promote on the platform they’ve built for years by giving FREE content away. Sharing a promo video is the least we can do. Anyone who just take take take and not give, is no less than a bottom feeder.

[@fanaccount6600]

What's wrong with advertising? I mean wheter YC is actually as good as they say or not is another discussion but all companies do that in one way

[@daveb4446]

Well, have you considered maybe watching the video to find out instead of throwing a tantrum? Arguing when you have information is one thing, but arguing before you even know what you are arguing about is a bit ridiculous

[@devtea]

You made a good point. If you have Sequoia and a16z offers on the table - sure, skip YC. For the rest of us, this is actually a great video. They're not selling us something they're not upfront about. They want to give us money so we can delight customers. We don't owe anyone to accept their money. We are all welcome to cash any investor's check ❤

[@dangtony98]

If you haven't been following, every season there are investors who complain about the valuation of YC companies. Naturally, this video is, in part, a response to this phenomenon.

[@ikiai]

Why would I as a founder be interested in what investors think of YC?.. A bit of a too straightforward self-promotion.

[@domthefounder]

No brainer

[@CaliforniaRussianRiverBees]

Great Information Y Combinator