YC provides resources and support to help founders build successful companies, while also being aware of investor tactics to avoid being taken advantage of.

• 🤔
  00:00

  Founders often don't know what they're getting into with YC, but it's a constantly changing product with lots of extra support to give participants an edge.

  • Founders didn't understand what they were applying for when they applied to YC, and YC does a poor job of explaining their programs and services.
  • People are often surprised by the extent of the program and the extra support provided to give participants an edge.
  • YC is a product that changes constantly, not a university that stays the same year over year.
  • We discussed our lessons and shared our experiences to help you understand YC.
• 💡
  04:34

  YC provides access to resources and support to help founders build successful companies.

  • YC provides access to resources and privileges that other people don't have.
  • Founders had misconceptions about YC, such as not understanding the benefits and thinking they wouldn't get personalized support.
  • YC is not a magical solution to building a successful company, it is a great environment to do the work with peers and access resources.
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  08:10

  Do your research and apply to YC for an amazing peer group, honest feedback, and the opportunity to extract value!

  • Do your research and don't be misled by misconceptions about how far along you need to be to apply to YC.
  • YC prefers to fund companies that have just started with a clean slate and are ready to go, rather than those that have gone through multiple pivots and burned through money.
  • YC provides an amazing peer group, honest feedback, and the opportunity to extract value from the program if you're a great founder.
  • Valuations this summer were almost the same as the last batch, with 15-25 being the most common and some companies raising at 30.
• 💸
  13:21

  Don't rely on others' fundraising experiences; it's easy to make mistakes.

  • Don't base your fundraising expectations on other companies' experiences; it's easy to make mistakes.
  • Raising a valuation is not a guarantee of successful fundraising, and advice should be taken with caution.
  • YC companies are able to run an auction, name their own price, and receive inbound offers from investors, which is a foreign language to most Founders.
• 🤔
  16:55

  Promises of help from industry insiders often come with strings attached, so be wary of those offering assistance.

  • The most approachable people in the industry are often the most exploitative and act as gatekeepers.
  • In Silicon Valley, there are people who promise to open doors for newcomers, but often these promises are empty.
  • Fake advisors and characters with social media clout appeared, offering help in exchange for equity, but they were not successful in helping the startup.
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  20:02

  Founders should be aware of investor tactics when fundraising to avoid being taken advantage of.

  • Founders were shocked when an investor agreed to sign a SAFE without Pro rata rights, board seat, or board observer seat, not realizing that subsequent investors would be deterred by the large amount of equity the first investor had acquired.
  • Founders should be aware of clever investor talking points and memes about fundraising that may be used to leverage more rights from them.
  • Investors are ripping off founders by charging them exorbitant legal fees for a priced round.
• 💰
  23:14

  Founders should be cautious when fundraising and not be rushed into decisions by investors.

  • Founders don't know when investors are making up rules and trying to lead rounds without committing the full amount.
  • Founders should not be rushed into fundraising and should be wary of content marketing from the venture capital industry.
  • Founders worked hard and it was a fun batch, reminding us why YC is such a great job.
• 🤪
  26:14

  Survived at 19, kind of nuts.