Y Combinator 2022: How to Apply and Succeed at YC

Have you ever wondered how it is that some startups with barely more than an idea achieve incredible success?

Or how they were able to get venture funding, attract the best talents and survive the journey to success?

The short answer—accelerator programs like Y Combinator—which helps startup founders turn dreams into reality.

So far, YC has built the backbone of over 3,000 startups and has also contributed to the growth of more than 25 companies with a valuation of $1billion.

With this, it’s no secret why every startup wants to join in on the YC train. But how do you go about it? How do you get your hands on this opportunity?

In this article, we’ll give you an overview of what Y Combinator is, why it’s important for entrepreneurs to apply, and how to get started on the right foot as a founder.

Let’s dive right in:

What is the Y Combinator Program?

Y Combinator (YC) is a seed accelerator and incubator program that provides funding, advice and connection to companies for a 7% equity stake.

The program helps founders take an idea through to a public launch. It was founded in March 2005 by Paul Graham, Jessica Livingston, Robert Morris and Trevor Blackwell.

Since then, YC has funded over 3,000 companies, including Dropbox, Airbnb, Stripe, Reddit and Flutterwave, with a combined valuation of over $600 billion.

In addition, YC is one of the most competitive accelerators in the world, with over 10,000 applications from companies globally and an acceptance rate of 1.5% – 2%.

Also, to be considered for the program, startups have to submit their idea via application, which can sometimes be challenging for some founders.

Y Combinator (YC) has two batches of three months (winter and summer). It culminates at “Demo Day” when startups present their business plans in front of an audience of investors.

Who Can Apply to the YC Program?

Y Combinator (YC) accepts applications from different companies at different stages of development and growth.

Although the seed funding program is a bit biased towards startups working on tech and internet-related products, they’ve also funded companies in many categories, including education, space travel and biotechnology.

That’s not all, YC has also funded for-profit companies that aren’t startups, including established businesses like Airbnb.

In addition, you don’t need to be a software engineer or have a team of computer scientists working with you. If you’re sure you have something special, apply.

However, for a successful YC application, ensure your company falls under some of the following categories:

Startups that have shown to have traction with significant revenue.
Businesses with scalable ideas solving real-world problems.
Businesses with live products that customers are actively using.
Companies that have built a prototype or even just an initial product before applying for the program.
Founding team who can build their products themselves instead of outsourcing.

These aren’t official Y Combinator criteria, but based on research and observations from previous YC alumni, checking some of these boxes can help you get one foot in the door.

How to Apply and Succeed at Y Combinator

YC founder Paul Graham talking about Prototype Day at YC S2019 — Paul Graham talking about Prototype Day at YC Summer 2019

Getting into YC is a dream come true for many startup teams because of its prestige. However, with the number of applications YC receive, it’s difficult to make it to the interview stage.

To help improve your chances of making it through the selection process, we’ve highlighted key areas where startup founders should focus.

Let’s gets started:

How to Apply to Y Combinator

Applying to YC is really straightforward. Follow these four simple steps to get started:

Go to the YC website, log in or sign up to fill out your application
Follow their instructions carefully, fill out your application and write clearly about your idea
Read articles on their website about the next steps and how to prepare for interviews
Next, expect a call for an interview if your application is successful

Recommended Reading: Top 9 Nigerian startups to look out for in 2021

What Makes a Good YC Application?

According to Dalton Caldwell, head of YC admissions, the following are some insightful Y Combinator (YC) application tips founders should adhere to for a successful application:

Fill out each section in the right format

As simple as this might sound, ensure you answer every question on the application, use the right URL where needed and fill out your bio properly.

Use the correct format for the founder video

Next, follow the directions on how to create the founder video. According to Dalton Caldwell, the video should be 1minute long, with all the founders in the video.

Aim for clarity of thought

Avoid fluff in your application. Go straight to the point right away. YC partners read hundreds of applications daily, which means for your application to be successful, it needs to be exceptionally clear and concise.

Tell a story with your application

What’s one thing YC partners look out for in an application? A captivating story.

Provide details on the idea your company is working on, who the founders are, your accomplishments, the state of your company, and also talk about users (if you have any).

Have a founder with technical know-how

Also, clarify that there’s at least one person on your team that can build the product you’re working on.

This isn’t restricted to the role of CTOs alone. It could be scientists on a team working to find a cure for cancer.

Prove you can bring your product to life

Another thing you need to know is that application readers at YC don’t take your word for it. You need to show workings, even if it’s a prototype that you’ve built.

So it’s important to have a technical co-founder.

Cross-check entry before hitting send

To wrap it up, cross-check the information you’ve provided. Break down complex ideas, tell unique stories, and show that you have what it takes to bring your product to life.

YC Interview Process

First, Y Combinator (YC) interviews are conversational. The aim is to help the interviewers know more about your company in the easiest way possible.

Also, the interview has a duration of just 10 minutes and the questions are pretty basic, according to the head of YC admissions, Dalton Caldwell.

On the other hand, YC applicants need to be wary of internet content that portrays YC interviews as arduous. The process is simple if you follow the right steps.

What Makes a Successful YC Interview?

YC partners are interested in the founders as much as they’re interested in the company and their ideas.

In fact, if the founder shows they know their onions, they stand a good chance of being funded.

“I care more about the founders than the idea because most of the startups we fund will change their idea significantly” – Paul Graham.

The following are two factors that make for a thrilling interview encounter:

Founders show mastery of their own business

For a successful interview, founders need to know everything about their business and industry.

For example, you should be able to talk about your business plan, the project you’re working on, the number of users you have and what your equity split is.

It also helps to think of the interview as a way to clarify some things you filled in during your application. The interviewer simply wants to understand your application.

Founders show a willingness to learn

Besides having an excellent knowledge of your business, you also need to show a sense of self-awareness.

According to Paul Graham, “it’s better to be aware of the flaws in your idea than to conceal them. If we think of a problem you don’t mention, we’ll assume it’s because you haven’t thought of it”.

This might seem counterintuitive, but overconfidence during the interview doesn’t show a self-aware founder or someone willing to learn.

For a more comprehensive guide on what a successful YC application looks like, follow Paul Graham’s thoughts on the YC application process.

What is YC Demo Day?

Founders at Y Combinator Demo Day S2019 — Founders at Y Combinator (YC) Demo Day Summer 2019

YC Demo Day is an event for Y Combinator startups in the Winter and Summer batches. In just 60 seconds, each company gives a presentation to a carefully selected audience of investors and media.

The goal is to give these founders a chance to present in front of the largest group of influential people possible and get feedback on their product and pitch.

Also, it’s important to know that Demo Day isn’t a competition or a speed dating event. You don’t have to worry about the allotted time as long as you can convincingly present your idea.

Additionally, the Winter 2022 Demo Day will be a two-day virtual event. It will be held on March 29th and 30th, 2022.

Tips to Help You Prepare Well for Demo Day

Your company’s Demo Day presentation is the culmination of everything you’ve been working on for the past three months. It’s your opportunity to attract investors to your big idea.

To help you prepare well, here are some things you should note:

#1: Know your company inside and out

What is your company all about?
How did it start?
When was it founded?
Where does your product fall in the marketplace?
What makes your product stand out from others, and why will people want it?

#2: Know everything about your industry

Who are your major competitors?
What do they offer that you don’t, and vice versa?
How will customers shop for this type of product?
What do they expect from a new product entering the market?

#3: Do some research about investors attending Demo Day

It’s highly unlikely that you’ll know every investor attending Demo Day, even with research.

However, studying up on the people who’ll be listening to your presentation can help boost your motivation and make you more comfortable.

Above all, have a scalable business plan and avoid a cookie-cutter elevator pitch.

Why Should Startups Apply to Y Combinator?

When it comes to startups, it’s safe to say that the golden goose of all incubators and accelerators is Y Combinator.

This program is responsible for some of the most well-known companies in the industry such as Airbnb, Stripe, Reddit etc.

Although there are countless reasons why startups should apply, here are the top four mentioned by experts:

Networking and exposure

Startup founders who join the YC program find they make valuable connections with other entrepreneurs, experts and investors.

This network helps them grow their business by providing them with valuable resources.

Mentorship

Y Combinator gives founders access to a pool of highly skilled mentors who have been entrepreneurs themselves at some point in time.

These mentors help founders brainstorm new ideas, develop strategies to solve problems and get advice on how to reach their goals in the most effective way possible.

The Demo Day pitch

Startups pitch their ideas and products to investors on Demo Day. This helps them raise funds and build a strong brand image for their businesses.

With over 1,500 investors and the presence of media at YC Demo Day, your idea will surely pique someone’s interest.

Funding offer

When startups complete the program, they get an offer of $500,000 in funding from YC, which is in two safes (the “$125k safe” and the “MFN safe”)

It’s this offer that makes YC one of the top startup accelerators in the world.

Are There Other Alternatives to Y Combinator?

The Y Combinator (YC) accelerator program has graduated hundreds of startups into Silicon Valley stardom and global tech hubs, but it’s not for everyone.

If you’re a startup founder that wants help with your business, there are plenty of other options available.

Below is a list of some of the best alternatives to Y Combinator for startups:

Wrapping Up

YC has become a huge force in the startup community over the years. It’s no longer just the hot place to be, but is often regarded as a necessity for ambitious companies that are looking to grow quickly.