

Rejected from YC last night... got anchor client this morning - chinup

Like others, we were down about our YC rejection last night.<p>This morning, we got a commitment from an anchor client (we target small/medium businesses). It took 15 minutes to convince the owner of this multi-million dollar business to say: "I love it."<p>We built a demo for our customers and decided to send it to YC as well. In the past 3 weeks, the only one who has turned us down is YC. 6 for 6 (knock on wood!!) We have even turned down a business that is not a good fit for us. These are all paying customers, btw.<p>We may not be headed to YC but we are still building stuff people/companies want. Hope this inspires others to forge ahead.
======
markessien
Most people don't realise exactly how easy it is to make money off the
internet. I remember when I made my first piece of software, and 3 days later
someone bought it. I thought to myself - what? The software sucked big time!
Then the next day, someone else bought, and so on.

A year later, I put up my first > $500 software, not really expecting anything
to happen. A week later, a sale came in, a few days later, the same.

There was no marketing plan, no competition analysis, no snazzy web designer
or any of all that. Just put up the site, list it on download.com.

Software is an easy business. The hard part is in learning all that stuff so
you can actually make the software (or know how to tell people what to do),
afterwards it's pretty easy if you just release your stuff.

~~~
tomjen
Well you are partly right, but you can get a lot further and get there faster
if you do have a plan.

------
SwellJoe
It's probably worth remembering that the last time YC talked about the number
of applicants (a couple of years ago), it was something like 800. They usually
accept about 20, and given the way the model works it's probably not possible
to handle more. Now, of course half of those are probably applying on a whim--
just finished college, or whatever, figured "Hey, what the heck, let's try
getting rich...or at least continuing the college lifestyle for a little
longer."--but even if we can assume that 50% of applications are complete non-
starters, that's an awful lot of potentially great companies that get the "no"
from YC.

The tech industry lived without YC for decades. You can definitely start a
company without YC approval, and it can be successful.

~~~
pg
If we said 800 we must have been talking per year, not per cycle. The number
has gone up since, but it's still not 800 per cycle.

~~~
SwellJoe
Sometimes I doze off a little when you're talking. This must be one of those
occasions. Sorry.

------
markbao
Garry from Posterous said it best last night on IRC:

You don't need a permission slip to start a startup :)

~~~
LogicHoleFlaw
A pink slip might help though ;)

~~~
swombat
I'm sure many people here will be able to obtain one of those if they try hard
enough.

~~~
lallysingh
If everything else fails, there is this:
[http://www.folklore.org/StoryView.py?project=Macintosh&s...](http://www.folklore.org/StoryView.py?project=Macintosh&story=Are_You_Gonna_Do_It.txt)

------
satyajit
Congrats! In the time of Sequoia presentation, recession and YC rejection, we
need to hear other success stories like yours to keep ourselves focused! PG/YC
are Good, not God!

~~~
bigthboy
Recession and YC Rejection.... sounds like part of some hit new rap single for
Wall Street.

It's been said a lot lately as a reminder, not only by people of this
community but also by pg himself in the letters and in HN comments. Don't stop
doing what you love because pg and co didn't have space for it out of the
estimated (no official numbers) 700 applicants that applied at the same time.
PG will tell you that they aren't exactly the best at necessarily "picking the
winners" and neither are most other investors.

The important thing is to move forward. As the OP shows, you don't NEED YC to
be a successful and thriving business, even in troubled times. YC is a
stepping stone and sure shot at opening doors that most of us have to pry open
ourselves. YC != Success... YC is the beginning, but it should not be the end.

------
ericb
PG et all are only human. There are tons of businesses that don't fit their
mold or that they won't be able to divine the greatness of, in advance. Not to
mention that the sheer size of the applicants pool guarantees they will turn
down good ideas and good teams.

Looking over their past companies, it seems revenue-focused businesses are
less favored in their mix than one might expect, so perhaps there is less of a
leaning toward that criteria than one might expect in their evaluation. One
question you don't see in their application is "do you have revenue or paying
customers?"

I am sad for applicants who are able to, but don't, start something because
they didn't get "validation" by way of a PG nod, but those are the people who,
if I were PG, I would least want to fund.

So I guess what I'm saying is, don't take the lack of acceptance personally,
like I did. :-)

------
skmurphy
Of all the sources of funds for an early stage venture, revenue is the most
compelling demonstration of traction. Too many entrepreneurs view fund raising
as an accomplishment in an of itself. This is a great story!

------
transburgh
Just because you got rejected doesn't mean you have a bad idea. PG/YC might
have even liked your idea but did not think it was a good fit at this time.

Congrats on the new accounts btw!!

~~~
sctb
It's of course possible that YC thought it was a promising idea; with the
number of applications they received it sounds like many solid ideas had to be
turned down.

------
lanceweatherby
Customers are more important then investors.

~~~
fishonmars
true.

------
wensing
Stormpulse was politely turned down by YC in 2007. I'm sure getting accepted
would have changed things in a good way, but I can't complain about the way
things are going; a YC-no-thanks is not a fatal judgment.

~~~
kahseng
Why don't you get your own email address @stormpulse.com instead of gmail?

~~~
wensing
I was also going to add that I would say for B2C relations this doesn't seem
to matter a lot. In fact, I prefer it, as it makes us seem more single point-
of-contact and personal (for some reason I have no confidence whenever I email
a support@xyz.com, or even feedback@xyz.com). Presenting your customers with a
Mom and Pop shack even when you're a Wal*Mart isn't a bad thing. It helps them
feel bigger if you seem small.

As far as B2B, I haven't seen any negative responses there either, perhaps
because we don't deal with many middle-management MBA-types. Most of the fans
we've heard from are either low on the totem pole, helping us get in the door
at their mother ship, or so high on the totem pole that @stormpulse.com might
make them think of us as a large cockroach at best.

~~~
kahseng
I agree with the reasoning. However, more from a hacker's point of view,
wouldn't you rather hide the implementation details of your email system you
use behind something that you know will stand the test of time?

For example, if gmail were to no longer be the preferred email address system
of techies (because they start charging, they are no longer reliable, or as
seen more recently, you get totally locked out with no way of getting real
support, etc), you would have to struggle with letting the word out about your
new email address, or something.

With your own email address, you would have the flexibility to switch out to a
different mail provider with your domain's MX records. You also can print
business cards without worrying about reprints and the like. :)

Anyway, I don't necessarily think bigger customers will think you're bigger
just because you own a @stormpulse.com email address.

------
tbrooks
Despite being rejected for YC, pg and team couldn't have done it in a more
graceful way.

I was appreciative of the way the email read.

------
mdasen
Maybe you were rejected precisely because YC wouldn't help you. I mean, if you
don't need YC's money or YC's network, then what good is YC for you? They're
not a long-term investor that will carry you for years. They're a short-term,
get you off and moving investor. It's a great thing (wouldn't be on here if I
thought otherwise), but if you've been able to get 6 customers on board
without YC, what would YC give you?

I'm not trying to play down the importance of YC, it's just that its
importance is specific - startups where the founders need a little capital to
get their idea off the ground and not starve as they're not in a traditional
job.

------
jdavid
I have renewed hope in my startup SocialHelix we have had some new and
interesting interest. Plus I know how I want to build the backend now. Graph
services are tough.

~~~
ph0rque
I have to say, I love your idea for bring google-maps-like navigation to
other, abstract concepts. You aren't thinking of releasing a jQuery plugin for
doing that by any chance, are you :~)?

~~~
jdavid
where are you located?

currently our interface is all in flash, but we have thought about a browser
only option that might work on the iPhone or android as a web page.

we have also talked about a potential plugin architecture to make it easy to
develop apps on top of our interface. if you know of anyway for us to get a
few months worth of funding for it, we would be open to a number of things for
out project.

------
Corrado
We're still waiting for our "big break"; our product is great but no one seems
to notice us. Outside funding is not really in the cards so YC is not really
an option. But then again, we won't get turned down. :)

Wait a minute ... maybe getting turned down is the key! Hey, YC! Can you look
at my stuff and turn me down right away, please?

Thanx! Richard

------
speby
Well done on the new accounts. Are you far along with your product I assume?
What is your product btw?

~~~
chinup
We're trying to get a private beta up in 2-3 weeks from now.

------
charlesju
Congratulations! Want to share with us what your startup is, or is it hush-
hush still?

~~~
chinup
Still trying to be stealthy (hence the new HN account). What I can say is that
we're building a portal for a really cool niche.

------
fishonmars
I got turned too. We're competing with eBay and our site launches in 2 weeks.

~~~
owkaye
Sounds interesting, please keep me informed if you can, I'm at owkaye (at)
gmail (dot) com, thanks!

------
siliconcalley
6 for 6? Do you mean 6 for 7?

And congratulations - when one door closes another one opens.

~~~
satyajit
"No it doesn’t. Not unless the two doors are connected by relays or there are
motion sensors involved " (Dr Sheldon Cooper, Big Bang Theory)

~~~
hugh
It might just be an air pressure thing.

