The Truth About Y Combinator

With the YC S22 batch coming to a close, Dalton Caldwell and Michael Seibel reflect on the recent batch and their experience fundraising. The two group partners also clear up some misconceptions about Y Combinator based on feedback from founders.
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 - Introduction
00:27 - Expectations
01:56 - Secret YC perks
04:57 - Not a mafia
06:08 - Misconceptions
07:02 - Investors
08:05 - Direct experience
08:51 - The scale lie
11:11 - Why to do YC
12:33 - Recent batch
15:08 - Running an auction
16:45 - Fake advisors
20:33 - Horror stories
#startups #entrepreneur #tech

[@ycombinator]

It looks like we had a brief video/audio issue just after the 5 minute mark. Sorry about that! - Zach (Producer)

[@milk_drinker]

Definitely not a mafia

[@spol]

😂

[@StreamAgency]

Keep up the good work, Zach.

[@margaretcezar1109]

@@milk_drinker that's the funny part 🤣. They're far from that.

[@mefisto05s.20]

Hahahaha

[@yamilletrivas8041]

If you are this fun and awesome in person then these YC founders are lucky!!!!! All the smiles and laughter along with the lessons! ok back to the video… The Not a Mafia but kinda Mafia adjacent had me laughing 😂

[@GauravSharma1]

YC is the smartest set of mission-driven founders and companies with a BIG vision. Loved the "mafia" voiceover. You guys are amazing 🤩 😆 😂

[@chenalee3730]

This is really great to know that 40% applied just with an idea. It’s hard to quit day job and do full time building w/o finding a way to cover basic living expenses. Targeting S23 🎉

[@daun-ai]

So glad to see you here Chena! ✨✨🚀🚀 Good luck on S23!

[@kingsdomains]

did you make it in?

[@KYRIOS_DRAGON]

What if you dont live in US? Is that a problem?

[@yuujishoppingltd8178]

A very educative piece especially on the reasons one should join YC. Its good you have also dismantled the many myths out there on YC

[@margaretcezar1109]

Thanks Dalton and Michael. You are too funny. Lol 😅

[@kchwophy]

Okay, now I'm going to apply to YC

[@edgy4925]

The darkened out part with Michael had me cracking. :D

[@TheAIEpiphany]

Super informative, thanks for sharing this guys! :)

[@jdavidson124]

Very insightful but this video felt more like a pitch for why YC and why not go another route. The results & success of YC speak for itself

[@angiekarasek]

I just started this whole adventure a couple of days ago and applied while at work today. I think I effed up my app so I’ll reapply better again next batch! 😅

[@TheCornField_]

Very enlightening. My mom actually sent me yall's youtube channel. I know I'm going to apply some day! Just don't know with what yet. Love what yall do, been watching some vids here and there and gonna keep watching! Please keep putting out good content haha. I had one question about the program. Do the applicants move to where you are? if so, is there housing you guys know of or how does that all work?

[@quentin2578]

YC's investment is also meant to fund your team's 3-month visit to the US as non-US-based founders.

[@nguyenbang4942]

@@quentin2578 oh it's great

[@Regina.Clarke]

Thank so much for this!!! I’m aiming for applying for the Summer 2023 batch.

[@chadp1124]

We haven't heard back from Ycombinator for the 2022 batch. The deadline is the 17 and 18th. Will all companies be notified if they didn't or di make it to the interview round by then?

[@LarsOutzen]

this is probably the best info from you so fare

[@CaliforniaRussianRiverBees]

This was the greatest Y Combinator Video for 2022. Tell the truth 💯

[@chapterme]

Chapters (Powered by ChapterMe) - 00:00 - Introduction 00:27 - Expectations 01:56 - Secret YC perks 04:57 - Not a mafia 06:08 - Misconceptions 07:02 - Investors 08:05 - Direct experience 08:51 - The scale lie 11:11 - Why to do YC 12:33 - Recent batch 15:08 - Running an auction 16:45 - Fake advisors - Early stage investing environment 20:33 - Horror stories 24:08 - YC mantra 25:42 - Outro

[@medwincorreo3073]

Thank you for sharing this, can you share story about board sit ?

[@dheerajs2838]

I have my doubts about 40% .. I applied earlier twice .. and I was in contact of 2 angel investors from YC who review people applications and both of them told me that you wont get anything because your revenue and traction is so small. I went on dinner with one of them along with another YC alumni in oakland, both of them literally told me that you can apply but ideally apply next year once you have more users and revenue. So I am not confident on this 40% number. When I went to one of the VC event this year, met another VC company told me that if you are thinking of applying to VC, come to us first .. we will fund you well before they do.

[@michaelseibel221]

Lol - we are the ones who grade the applications. Doesn’t that give us credibility?

[@dheerajs2838]

@@michaelseibel221 agree .. but I met those guys and they were with founder who was in YC. He was my friend. Literally showed email exchanges with you on their phone. so It was difficult to not to believe them.

[@johnbelluomini4597]

😊

[@FahmiEshaq]

@@dailydose273 huh! old school private smart boys club? What about all the public content they share without a dime...

[@Polapola23]

@@michaelseibel221 are u the real Michael?

[@velociraptor5962]

Oh heck. I thought YC was just "rich" venture capitalists who were helping startups with cash. I'm clearly misinformed. HAHA. Good video. Thanks for clarifying.

[@YoungJewelerYaa]

The whole mafia part was hilarious 😂👍🙌

[@danielkritzinger]

Why is this content not in podcast form? Would love to be able to listen to these discussions outside of youtube!

[@GregDubela]

You guys track us pretty good.

[@entertainmentyoutube3606]

The think is you should give context, I've seen often that people just do things and expects the rest magically knows everything they are talking about, context is primordial to any system, collaboration, or endeavor. And that is a widespread behavior mistake in all businesses and organizations

[@emmanuelokorafor1705]

Are YC interviews remote for international founders?

[@YoannBuzenet]

thanks guys, perfect

[@chenalee3730]

Would you ever cover venture studio stuff in this channel? I’ve gotten a contact from one and they are trying to sell but the equity deal seemed very shady. 1M from day one for a CEO(business person they find)+CTO(software background) team but the team only gets 30% total right off. The studio + their capital partner(?) take 60% from the beginning

[@SouravBhar12]

Run in the opposite direction. Hard no.

[@chrispaulclips]

My business partner and i have started a company in and around the NFT, Blockchain market. I am based in the UK. Am able to apply?

[@chan90s]

Does YC hiring platform sucks or do I suck ? Have applied to a bunch of YC companies for tech roles. Haven't heard from anyone. On the other I have used founder dating platform in the last - incredible

[@vraj9881]

I bet Michael at 19:09 wanna do "Sign of the Cross" gesture 😅🤣😂😂

[@freefallappz]

Yc might add some good value but you have to hand over waaay too much equity for it

[@joecod298]

Does YC accept non tech solo founder?

[@kn0wl3gd3g0d]

You can apply to their startup school and find a tech co founder

[@kn0wl3gd3g0d]

@Salah Shoman Y c offers it

[@CampbellsvilleBibleStudy]

Excellent... Terribly excellent! "One day"... One day I'll be there! I'm trying...lol Thanks for sharing, James & Rescue Kitties

[@vlogmoinc5597]

I put in so much work and didn't get in but a shirt made of trash made it in the batch

[@crebspark]

Oh Michael, you a mafia, you ignored all my emails lol 🤣✌

[@Apexzy]

Lol, sent numerous emails, no response. Had to give up.

[@Apexzy]

@dailydose, I sent emails since 2021 till recently. I decided to stop. It's not worth it. Wishing everyone who applies to YC the best. But if we don't get in this year, I'm not gonna be sending numerous application. Been sending applications since 2019. All rejections. It is what it is.

[@tannermeade]

A lot of good points here. It does feel a bit like an echo chamber. I don't know. Maybe I'm not in the YC market, but I feel like my concerns are sidelined and not being talked about. Like I get the value of being a part of what is maybe the highest quality networking group... and there's a ton of people out there who just don't have the business perspective to avoid a lot of traps. What I understand is this: YC has 3 value propositions (and these only) - high value networking - business know how/perspective - fund raising Sounds like YC's market is: - inexperienced founders who would sell off a sizable amount of their equity without knowing what they're getting in return - people with an inadequate network - people who need money and don't know how to get it I didn't feel like y'all were talking to people outside of those 3 groups, and y'all are experienced founders who know why it's important to know your market. I'm not any of those, so it just doesn't make sense to me.

[@leo_sn]

Interesting. What are your concerns?

[@ReactiveWork]

If you go to the "About" page on their website, they provide a long detailed list of all the benefits they provide. They've also got longer videos on this KZbin channel that cover the topic in more detail. Their program is much more than just a networking & fundraising avenue.

[@leo_sn]

@@ReactiveWork I don't think they're saying that there are no good things about YC, I think the arg is that they think there are bad things that are not really discussed

[@ReactiveWork]

@@leo_sn If his only exposure to Y-Combinator is this video, then sure - it's a brief video covering a few topics and not a refined marketing pitch with full program details. But they are very transparent about the cost involved (the equity you sell them to join, if accepted) and all of the legal paperwork is on the website so you aren't ambushed by it. In exchange for the 7% equity you get a bucket of cash + all of the other resources they offer. There's no secret negative to the program.

[@tannermeade]

@@ReactiveWork I've been following YC for years. Lots of quality content. Been through the Startup School as well (mostly to see and understand what they are doing with it).

[@StreamAgency]

What's the Club-password to get into YCombinator? I'm trying to be a made-man! I don't know of too many products that provide hope, inspiration, direction and money. The product is insanely good.

[@VANCOUVERHOUSEFINDER]

You guys have to understand there are yc wanna be accelerators who want take a piece of the pie. Yc will get less people over time because it is difficult to get in

[@Magns-AI-m]

As universe doesn’t have a starting point, it’s the same ideology for Mr. Michaels forehead!

[@tipsytennis]

I applied and haven’t heard anything yet. Who’s on the same boat??

[@sudeeppatra3648]

Here

[@visionofseattle7147]

Super curious? If you haven’t heard back if you submitted before the deadline, what does that mean? It’s getting close to nov 11th? 😂🎉😅

[@herdi1510]

I am betting YC is rejecting our application again, and that is why this video show up at my KZbin frontpage even Microsoft has backing us up. preparing for my mental health😨😧😦

[@LilNewtGingrich]

lol the mafia edit

[@vlogmoinc5597]

I'm ready to take the oath of silence

[@andreagaming6926]

I have a very great business idea but i don't know how to apply to YC. I think you should give me a chance.

[@ycombinator]

Apply to Y Combinator: www.ycombinator.com/apply/

[@DeeBall]

never think your idea is great

[@echavarria87]

@@DeeBall exactly this! Fall in love with the problem.

[@d7ffab979]

kzbin.info/www/bejne/onvEpqZ8n8R3qtE 16:40

[@kayhantolga]

Michael Seibel: I don't know, why do you think we suck at that(people miss understand what is ycombinator) though Dalton like it's pretty obvious we are bad at it. ## few minutes later Michael Seibel: We are not mafia but it is not completely false.. 😂

[@VANCOUVERHOUSEFINDER]

You guys are so funny: don’t try to sell yc to people who aren’t getting in. This is torture. Also michael really got in on the whole mafia life and how similar it is to yc . Dalton is like …. Ooookay. Michael’s been watching too much goodfelas. This is too funny

[@burnsaga]

Pretty sure that's in reference to Ryan Breslow (and possibly others) being vocal on Twitter/etc about YC being "Mob Bosses"/"Mafia"

[@KYRIOS_DRAGON]

What if you dont live in US? Is that a problem?

[@KYRIOS_DRAGON]

I check it. No there is not a problem but you have to go there for three months if they choose you. Don't worry about the money because if they choose you take 500.000 and you can use them also for that.

[@rrichforever]

Please YC, kindly work on increasing the percentage of African intakes.

[@mus3equal]

👍

[@kdme]

they are totally a mafia! 😂

[@andy_ppp]

You should help people fund raise who aren’t in YC. It sounds horrible out there.

[@jks234]

Lol. 5:00 Not saying it’s a mafia. But I can’t say it’s NOT a mafia. Just watch yourself. 🤨

[@ronallan8680]

Why did he sound so much like a Mafia kingpin trying to explain they're Not Mafia

[@chandansheth1]

These videos are where YC pitches to the world to invest their 7% .. haha .. hehe.. hohoho ;)

[@Teedot.I]

Has anyone who's applied for Winter 2023 batch been accepted? Comment below please.

[@markclingalinsonorin8051]

there are 7 companies already got accepted,

[@Teedot.I]

@@nitishgautam that's lastest they'll announce for interviews for early applicants.

[@Teedot.I]

@@markclingalinsonorin8051 how do you know the Numbers?

[@przeor]

For some reason, I don't like this format of YC videos - do you have similar feeling?

[@HeyItsSahilSoni]

This is fun, what don't you like?

[@kn0wl3gd3g0d]

I like it

[@todayu]

In the words of Homer Simpson... "Shut up and take my equity!" 📑✍🏾 Great video. I've watched a ton of YC content while getting my company off the ground and this was the video that convinced to me to stop watching and start applying. 🙌🏾

[@bluepunkrocker]

I'm ready to start my business! I watched a whole 3 videos so I think I've got this lol web3 eat too earn LFG 😋 love the content guys!

[@echavarria87]

I think you need to watch a little more than 3 videos lol