

The Y Combinator Experience - RyanAmos
http://ryanamos.org/2010/03/the-y-combinator-experience/

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jeff18
I am really envious of the "Y Combinator Experience". Is there any way to get
introductions to the various connections, go to the mentioned startup meetups
(we are located in San Francisco), and get some friendly advice, without
giving up equity?

I don't want to give up 5-10% of my company and the ~$10k would not make a
difference, however I would love to be more involved in the community, and am
particularly jealous of this paragraph:

 _"When you’re accepted into Y Combinator you are part of a community of 172
startups, that take every opportunity to help one another. Being part of this
community is invaluable. Six months after our session of Y Combinator ended,
the founders of S09 regularly meet, and I would consider us a close group of
friends."_

Is there any way for a non-YC startup to become an honorary member of this
group?

~~~
tolmasky
I really don't understand why people get _so_ hung up on the 5-10% thing. This
is seriously a bargain, to the point where all the YC founders are arguably
actually ripping pg off.

He only gets 5-10% of your current company, while you get his help, a ton of
connections, and the YC networks and friendships _for life_

~~~
pvg
Oh please. It's a big chunk of equity. It's not a bargain and nobody is
ripping pg off. It's great that pg is helping startups on terms that both he
and the startups that accept the investment understand. Portraying it as
charity or martyrdom is absurd, though. YC themselves don't.

~~~
coryl
At 6% for $17k, a two founder startup is valued at $283,000 by YC. Thats a
huge over valuation. Ideas aren't worth a quarter million dollars on paper.

It is _NOT_ a big chunk of equity for startups. If you think it is, you
haven't failed enough times to know better. Cause when you fail, you get to
keep 100% of nothing.

~~~
pvg
It's a big chunk of equity for the money. Now, you can argue YC invests in
very early stage, very high risk companies and the big chunk of equity is
warranted and that's fair enough. It's still a big chunk of equity. How much
equity did Andy Bechtolsheim get for his famous $100k cheque to the Google
founders?

~~~
coryl
Friend, hindsight is always 20/20. We don't know for a fact whether or not
Google would be worth billions if they didn't get angel investing, so that
example is moot.

But we do know the rate at which startups fail. We see that everyday. If
you've been involved in startups, you've experienced it. The problem is, your
looking at equity as a piece of the pie, trying to keep as much pie to
yourself as possible. The relative size of your slice doesn't matter. Its the
absolute size of the pie that matters.

~~~
pvg
It's a big chunk of equity for the money. That was the point. Either dispute
it by facts or don't. But don't weasel around calling me friend, pal.

~~~
coryl
Woah now. Okay, I apologize for calling you "friend".

Fact is, we all have different risk tolerances. I can tell you to play your
pocket aces aggressively, but if you want to slow play them, thats up to you.

I did my best to rationalize with you why the numbers don't matter in the big
picture. The best question to ask yourself is: can I create more value than
the value of the stake that I give up? If the answers yes, then give up the
stake, whatever the number. Most of us believe we'll get at least equal value,
and that giving up 5%-10% is worth it. Thats why the numbers mean nothing to
us, we don't equate 5% to being a lot because we know our new 95% will be
worth more than the previous 100%.

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Roridge
I too am jealous of the Y Combinator Experience. To rectify this I have
submitted my application. I don't have a degree from MIT either, and this blog
post has helped me remove some of my concerns. Thanks Ryan.

