That Orange Logo that opens doors. Our Y Combinator experience.
Looking back on our wild ride through Y Combinator, it’s clear that the accelerator left a lasting impact on us. Time to share the love.
How did we get in?
A trip down memory lane.
It all began on September 10th, 2018 — a fateful day that would ultimately lead to our acceptance into the prestigious Y Combinator accelerator program, 4 years later. On that day, Youssef and I started at Palantir, where we were part of the same cohort and quickly bonded as new employees. Our friendship deepened over the next four years, and in 2021, when we were both looking for a new place to live, we decided to share a flat.
From flatmates to cofounders.
Little did we know, that decision would be the starting point of an even greater journey. As we talked about our future plans, we realized the passion we shared about starting something of our own. We talked about this idea for weeks, and it slowly consumed us until we knew we had to do something about it. After a few late-night brainstorming sessions, the first concept we wanted to test out was born, Moonshot.
The following month felt like a story straight out of a movie. The thought of being accepted into Y Combinator was a dream come true for both Youssef and I, but at the time, Moonshot was just a glimmer of an idea and we didn’t think we stood a chance. In a moment of pure coincidence and serendipity, while sitting thousands of miles away from London, former Y Combinator president Sam Altman tweeted the below.
Sam? Are you talking to us?
Back then Moonshot concept was bare bones. So what Sam was describing was quite close to what Youssef and I had in mind. You might think that it’s a stretch for us to think what Sam was referring to was close to what we had in mind, but Youssef and I literally thought Sam was inside our flat, talking to us. Founders paranoia? Perhaps. It was all we needed though to apply.
Bucket list check.
With just five days left on the clock, we frantically cobbled together a half-baked application and hit send. Over the next month, we went back to our business. Our expectations of getting accepted were so low that we literally forgot about the prospect of it. But, as fate would have it, on the very last day of interview requests, an email arrived in our inbox. What? No way. After 48 hours of non-stop stress and two of YC’s notorious 10-minute rapid-fire interviews, we received THE call from Harj, inviting us to join the prestigious accelerator program. What is happening?!
What it’s really like?
The kickoff
The S22 batch of Y Combinator was a bit of a wild ride, mainly because it was the first one that was held in person. This meant a 3-day retreat in the picturesque Napa Valley with all of our batchmates to kick things off. It was 3 days of exceptional planning that led to (I hope) lifetime bonding. The kickoff of YC also coincided with Youssef and I going full time on startup life, so it was a thrilling and confusing time to say the least.
The standard deal.
YC’s standard deal is like finding a pot of gold at the end of a rainbow: $500k for approximately 10% of your company, in addition to weekly advice from serial entrepreneurs that are invested in your success. But, like any good fairy tale, there’s a catch. The ultimate goal of the YC partners is to turn you into a seed-funding powerhouse by Demo Day, which usually means one thing: generating revenue. So, while early-stage startups may see the deal as a sweet deal, companies that are a little further along in their journey tend to benefit more from the partners’ advice. And for those of us still in the idea stage, it’s time to get scrappy and hustle to make some revenue before Demo Day.
The process.
For us, it was a wild ride of hustling and experimentation. The biggest advice we kept getting was to pivot, but we were stubborn, naive and well, retrospectively wrong to ignore it. We weren’t alone though. Most companies in the batch were in the same boat, so we never felt lonely on this journey. In fact, our weekly all hands was like a therapy session where the group could bond over our shared struggles and share tips to navigate this common pursuit. Brad, Harj, Divya and Tom were giving us the final push to monetize strategies. And just like that, Moonshot made its first dollar, less than a month after incorporating. It was not a lot, but it was something.
Bookface is the real deal.
One thing that not many folks know, is that YC itself is a software powerhouse. They’ve created a little piece of heaven on earth called Bookface. It’s like a secret weapon, built by the YC team specifically for us founders and it’s got everything you could possibly imagine. From reviews of investors written by other founders to mind-blowing deals offered to YC companies by other companies. Trust me, the deals on Bookface are so good, it’s almost criminal.
Demo day
Demo Day was a blast. It was like the grand finale of YC’s symphony, where all the magic comes to life. 250 founders, 100,000 potential investors all converging in one place, changing the future. You literally have 60 seconds (yes, that is not a typo) to present so it goes by sooo fast.
What was interesting to find out was that all startups are given the option to push their Demo Day to the next batch, if they wanted to. This makes a lot of sense in certain cases, especially when you’ve recently raised funding and you have a decent runway. The YC partners put it this way: Demo Day is the ultimate leverage for fundraising, as founders receive so many inbound requests, so why not make the most of it.
Youssef absolutely nailed it on Demo Day and that was it, we were now Y Combinator alumni!
Is Y Combinator worth it?
How can it possibly not? The cost is approximately 10% and what you get in return? Well to start with you’re getting a half-million dollar investment and due to the Demo Day leverage, the potential to boost your seed round valuation by a factor of 3–4. But the real treasure trove is the access to the YC network and Bookface. And let’s not forget about the doors that open for you as a YC alum. That orange logo is like a golden ticket to networking heaven. Finally, the connections you make with fellow founders last a lifetime (or at least I would like to).
So, what are you waiting for? Applications are open for the next batch and the deadline is fast approaching. Just do it!
[The story continues] The pivot
We should have listened…! Brad and Harj definitely knew what they were talking about it when constantly pestering us to pivot. It took us a few months but we did and that’s how Wondercraft was born in April 2023. It’s hard to throw away months of work, but ultimately, sometimes it’s the right move. Wondercraft is going great and we’re really happy to be building software again! Follow me on Twitter and DM if you want to chat more about YC!
