Q&A with YC Partners at Startup School SV 2016 | Summary and Q&A

TL;DR

YC partners answer questions about starting a startup, including timing, idea vetting, co-founders, tools, and more.

Key Insights

• 💭 Starting a startup: It's best to start now and become a domain expert along the way. Joining a hot startup for a few years can give you valuable insights.
• 💡 Discovering and vetting new ideas: Look in your life and community for problems that interest you. Focus on solving a problem you care about, not just impressing others.
• 💰 Choosing between passion and revenue potential: Balance your love for an idea with its monetization potential. Consider your long-term goals and the impact you want to make.
• 👥 Solo founders: It's better to have a co-founder, but solo founders can succeed too. Unique insights, traction, and competence are important factors for consideration.
• 📈 Early-stage growth rates: Growth rates vary depending on the business. What's important is making progress and being intellectually honest with yourself.
• ️ Applying to YC: There's no "too early" or "too late" stage to apply. The application is a good framework for thinking about your business.
• 🗒 YC application tips: Be concise, don't bury the lead, and showcase evidence of action. There's no specific checklist; YC looks for a balance of factors.
• 🔁 Startup advice: Let go of unnecessary tasks, ask for help, and don't conform to a specific startup culture. Write your own success story and find what makes you happy. Share your struggles with trusted individuals.
• 🙌 Thank you: Thanks to the YC partners, staff, and attendees. Appreciation for the startups who participated and the event organizers. Reception at the sunken garden until 7:00 PM.

Transcript

I'm cat one of the partners at YC and I'm gonna bring on a bunch of the partners with me today to help answer some of the questions that you sent us thanks for sending all the questions let's bring everyone out all right what's up everyone introduce themselves really quick so let's go down the line we'll start with adora oh hey I'm adora I'm time a... Read More

Questions & Answers

Q: When is the best time to start a startup and how do you balance becoming a domain expert?

The YC partners suggest starting now and working towards becoming a domain expert, even if you're not one initially. They advise engaging in field work or research to develop expertise over time.

Q: What is the process for discovering and vetting new ideas for startups?

The partners recommend looking for ideas in personal life, family, community, and work. They also suggest considering what one would want the first line of their Wikipedia article to be and focusing on solving problems they care deeply about.

Q: How should one choose between an idea they love but may be difficult to monetize and a product with good revenue potential?

The partners advise focusing on passion and problem-solving rather than just revenue potential. They emphasize the importance of finding something deeply important to oneself, even if it may not sound impressive to others.

Q: Should solo founders be concerned about starting a startup without a co-founder?

The partners believe that having a co-founder is generally better, but acknowledge that YC has accepted many companies with solo founders. They suggest bringing something unique to the table and demonstrating competence and traction to increase the chances of acceptance.

Q: What tools or services do the partners recommend for founders starting out?

The partners recommend using services like Clerke for incorporating the company, Gusto for payroll management, and Ironclad for storing legal documents. They stress the importance of focusing on the product and not reinventing the wheel with these aspects of the business.

Q: Are there any aspects that early-stage founders often waste time on that they should automate or move on from?

The partners advise early-stage founders to keep things simple and focus on the product rather than spending time on complex voting structures or excessive secrecy. They suggest automating basic processes and seeking assistance when necessary.

Q: What is the balance between moving fast and perfecting the product?

The partners argue that there is no binary answer to this question and that startups should strive for both. They emphasize the need for a balance and suggest focusing on product improvement when facing retention issues rather than prioritizing growth at any cost.

Q: What is considered a good growth rate for a recently launched startup?

The partners believe that the growth rate varies depending on the business. They advise founders to focus on making impressive progress relative to their own journey and to demonstrate their capability of acquiring customers successfully.

Q: What factors do the partners look for in a YC application and during interviews?

The partners emphasize the importance of unique insights on customer acquisition and the ability to communicate ideas concisely. They also highlight the value of actual evidence of action and progress, such as demonstrated product development, revenue, and customer acquisition.

Q: Is there an optimal time in the lifecycle of a company to apply to YC?

The partners state that there is no "too early" or "too late" stage to apply to YC. They encourage founders to apply regardless of their stage, as YC can offer assistance at various stages of a startup's journey. They also mention that reapplying is common and acceptable.

Q: Any final advice or helpful tips for entrepreneurs starting out?

The partners suggest being action-oriented, not conforming to startup culture norms, seeking support from trusted individuals during challenging times, and focusing on the rewarding journey of entrepreneurship. They also encourage founders to create their own path rather than following generic advice.

Summary & Key Takeaways

• YC partners suggest starting a startup as soon as possible, without worrying too much about becoming a domain expert first, but emphasizing the importance of eventually becoming one.

• They recommend looking for ideas in one's life and finding problems that interest them and are passionate about solving.

• The partners highlight the need to choose an idea based on personal passion, rather than focusing solely on revenue potential, and discuss the benefits and challenges of being a solo founder.