YC Continuity

YC will fund its 1,000th company this year, and many of these companies are now scaling their organizations, revenue, and operations.  Though years removed from our program, these founders continue to come to YC for advice and support, and we would like to do more to help them.

To that end, I'm delighted to share that Ali Rowghani has joined YC as a full-time partner.  Ali has quickly become a trusted advisor to many of our growth-stage companies, and is helping a great deal with our vision of continued support for our alumni companies after they finish our program.

Also, in response to requests from a number of YC founders, we've raised a new fund called the YC Continuity Fund, which Ali will be running.  This fund will allow us to support YC companies well after Demo Day in two primary ways.

First, we're going to do our pro rata investment for every YC company in every round with a valuation below $300 million.  We believe we generally pick good companies for YC, and we want to be able to continue to support them in future financings.

Second, we will consider leading or participating in later stage growth financing rounds of YC companies.  We are open to taking Board seats where it makes sense for founders, but do not expect to do so in every investment.  We hope to be a founder-friendly partner for maturing companies in the same way we have been a founder-friendly early-stage investor.  Also, there are some companies we think are very good and important to support with growth-stage capital that traditional investors are less excited about, and we're looking forward to being able to do that.  Finally, we look forward to being a very long-term focused investor in a sector where most players are not.

We also want to be very clear on what we're not doing. We are not pursuing investments outside of the YC portfolio.  We are also not leading seed or traditional Series A rounds or trying to otherwise disrupt early-stage VCs, whose participation in the ecosystem is very valuable.  It'd be the wrong thing for our companies, as it would both create massive signaling issues for companies we didn’t fund and deprive companies of valuable additional advisors.  By doing pro rata in every company, we should avoid any signaling issues.

Our mission at YC is to be the organization that enables the most innovation in the world.  Capital especially long-term capital willing to invest outside of the current trends is an important ingredient in that mission, and I'm excited we are now able to better support some of our companies.  In doing so, I hope that joining YC is an even better deal for companies just starting out.

YC Office Hours at Money20/20 - 10/27

YC partner Aaron Harris will be hosting office hours with startups at Money20/20 on October 27.

Sign up here.

Aaron will meet teams from 2pm-6pm PT on Tuesday, October 27. Office hours are 20 minutes each. We recommend coming with a specific question or challenge that you want feedback on.

If you're selected, we'll reach out with your time slot and where you'll be meeting by Friday, October 23.

See you there! 

UI/UX for Startups Livestreamed on Platzi - 10/12

Y Combinator's Kevin Hale will be hosting a talk at Stanford about UI/UX for Startups this Monday, Oct 12 at 5pm PT. Find out more here

If you can't make it in person, the talk will be livestreamed on Platzi. Sign up to watch the class.

Kevin will walk you through best practices for UI/UX design. Learn what elements every startup needs on their site, and see him do live UX reviews of products built by people in the audience.

If you'd like your site to be considered for live review, let us know here: https://ycombinatorevents.wufoo.com/forms/live-ux-review-at-stanford/

The talk will be followed by Q&A.

YC Digest - October 3-9

Top Stories from the YC World -- October 3 to October 9, 2015

The application deadline for our Winter 2016 class is next Tuesday, October 13. Apply now!

YC News

YC Research

Welcome Jared!

Sam Altman in conversation with Elon Musk at the Vanity Fair New Establishment Summit

I am Sam Altman, President of Y Combinator. AMA!


Apply by Luke Iseman

How to Apply to Y Combinator by Cofactor Genomics (S15) founder Dave Messina

Alumni news

Paribus (S15) Raises $2.1 Million

Welcome Jared!

I'm delighted to share that Jared Friedman is joining YC as a full-time partner.  Jared co-founded Scribd, the world's online library, which was funded by Y Combinator in 2006.  He was the CTO there.  Jared has also been an investor in more than 30 YC companies.  Before Scribd, he studied computer science at Harvard.

There are now 16 full-time partners at YC.

YC Research

Our mission at YC is to enable as much innovation as we can.  Mostly this means funding startups.  But startups aren’t ideal for some kinds of innovation—for example, work that requires a very long time horizon, seeks to answer very open-ended questions, or develops technology that shouldn’t be owned by any one company.

We think research institutions can be better than they are today.  So we’re starting a new research lab, which we’re calling YC Research, to work on some of these areas.

We’re going to start YCR with one group (which we should be ready to announce in a month or two) and if that goes well, we’ll add others. 

YCR is a non-profit.  Any IP developed will be made available freely to everyone.  (The researchers will, of course, have full discretion over when they’re ready to release their work, and we’ll have a process in place to address technology that could be dangerous.)  Because of the openness, the researchers will be able to freely collaborate with people in other institutions. 

We’re not doing this with the goal of helping YC’s startups succeed or adding to our bottom line.  At the risk of sounding cliché, this is for the benefit of the world.  As we’ve seen throughout history, new technological breakthroughs help all of us.  Fundamental research is critical to driving the world forward, and funding for it keeps getting cut. [1] 

To start off, I’m going to personally donate $10 million, and we will raise more money for specific groups soon.  In addition to salary, researchers at YCR will also receive equity in Y Combinator as part of their compensation. [2]

YCR researchers will be full-time YC employees (instead of us making grants to other organizations).  We’ll especially welcome outsiders working on slightly heretical ideas (just like we do for the startups we fund) and we’ll try to keep things small—we believe small groups can do far more than most people think.  Also, smallness usually means less politics, which has plagued science in recent decades.

The researchers will have full access to YC and the YC network.  YC has a very high problem flux at this point—we fund hundreds of companies per year.  Compensation and power for the researchers will not be driven by publishing lots of low-impact papers or speaking at lots of conferences—that whole system seems broken.  Instead, we will focus on the quality of the output.

We plan to do this for a long time.  If some of these projects take 25 years, that’s perfectly fine with us. 

We’re very excited to see what comes out of this.


[1] Funding for technological development is actually relatively high, but funding for fundamental research keeps getting cut.  Investors want to fund incremental progress—and the world has gotten very good at delivering that.  This is more valuable than it sounds; incremental progress compounds quickly. 

But it’s not all we need—we are dependent on the unpredictable breakthrough jumps to drive humanity forward.  Technology startups today work very well for making a super-efficient piston engine, but they are unlikely to fund the kind of open-ended R+D required to develop a jet engine.

[2] We think it’s important for the researchers to make as much money as they might in at a large company or a startup.  YC equity is fairly low-risk (we fund hundreds of companies per year) and high-reward (they have historically done very well), so it will hopefully be a good solution.

Many of the best researchers in the world are forced to choose between high-paying engineering work to support their families or doing the work they really want to do; the fact that this is an either/or choice is bad for all of us.  


At YC, we have a healthy problem. It’s cool to start a startup lately, and YC is an increasingly  popular place to do so. But this kind of popularity can be a double-edged sword: In the last month, I’ve spoken to more than 50 high-quality founders who would make strong candidates for our upcoming class but feel intimidated out of applying to YC. 

There are a lot of reasons.

Some think they’re too early. They don’t have a fully-functional prototype, user growth is lower than they’d hoped, their crowdfunding campaign fell short.

Some think they’re too late. They know exactly how they’ll manufacture their device, they already ran a 6-figure crowdfunding campaign, their site traffic is growing. They (nearsightedly) see a series A as the ultimate goal, and it’s just barely out of reach.

Some have been rejected previously. For their current startup or a past one, they tried and failed to gain a spot in one of our previous classes. They decide that it’s not worth trying again.

The reality is that there is no ‘just right:’ Each company is different, and there is no perfect time to apply.

If you think you’re too early, you probably aren’t. The questions in our application are all things you should be thinking about at the earliest stages of launching a startup. They will help you structure ideas around your fledgling company. These are questions you should have answers to regardless of whether you plan to apply for YC. Instead of wasting time pondering whether your company is mature enough to apply, answer the questions, add a video, and submit your application.

If you’re afraid you’re too late, think again -- particularly if you don’t fit into a traditional venture-capital-friendly category. Last year, hundreds of companies that raised over $200k applied. YC is great for entrepreneurs with ambitious visions in categories unusual to venture capital, and you’ll see us introduce additional tools to help here in the coming months.

Over 10% of our alumni were rejected the first time they applied (including Luna Sleep, a strong hardware company in our last class.) We love seeing companies apply again. Show us that you’ve progressed substantially towards product-market fit, and it will be a no-brainer to offer you an interview.

As of this posting, applications are open for another 8 days. Many of our best companies applied on a lark. Many of our best companies thought they were too late/early to apply. Apply!

[Thanks to Colleen Taylor, Denis Mars, Jared Friedman, Sam Altman, Aaron Harris and Kat Manalac for reading drafts / contributing]

YC Digest - September 25-October 2

Top Stories from the YC World - September 25 to October 2, 2015

YC Fall 2015 College Tour: Next week we'll be at Carnegie Mellon and Stanford!

Two HN Announcements

The 20 Minute VC podcast interviews YC partner Aaron Harris

Can Y Combinator find its next ‘unicorn’ in a hardware startup? - Fortune interviews YC's Luke Iseman and Michael Seibel


I and We by Aaron Harris

Airbnb and San Francisco by Sam Altman

YC Alumni News and Launches

Instacart (W12) hires Ravi Gupta as its first CFO

Watsi (W13) co-founder Grace Carey profiled in the Huffington Post

Eden (S15) launches an on-demand tech support product aimed at businesses

Triplebyte (S15) raises $3 million 

Upverter (S11) launches 'Parts Concierce,' a Github for hardware

Goldman Sachs highlights EquipmentShare (W15), TradeBlock (W14), and Yhat (W14) in research note

Naytev (S14) launches Spark, a 'dark testing' social media tool for publishers

Two HN Announcements

The HN community feels like it owns HN, and we like it that way. HN has become an important institution in the tech community, and though it was initially developed for YC founders it's clearly evolved into much more than that.

We've always felt that the best way for HN to benefit YC is simply for it to maximally benefit the community, which mostly means keeping the story and discussion quality as high as possible. We read it ourselves, so we want that as much as anyone.

In that spirit, we have a couple of announcements to make: an organizational one from Sam, and a moderation one from Dan.

Making HN autonomous within YC (Sam)

We're going to factor out Hacker News into its own autonomous unit of YC. It has de facto been like that, but it feels like a good idea to make it official. Going forward, HN will no longer formally be part of the investment branch of YC, but will be its own separate thing.

Everyone at YC knows that it's vital for HN to have full editorial independence, and we have absolute trust in Dan's decision-making in product, engineering, and moderation. Dan will report directly to me, though I don't plan to be very involved--other than as an enthusiastic user (who would, however, prefer that it be easier to read on a phone) and someone who's always happy to bounce around ideas. We're also setting it up so that Dan will have the option of reporting directly to the YC Board of Overseers instead if he ever decides to.

Dan is an incredibly talented person who really understands the art and science of HN; I'm excited to see what he has planned for the future.

Modnesty I: More Community Moderation (Dan)

HN's approach to moderation has always been three-pronged: software automation where possible, human intervention where necessary, and as much community moderation as users can provide. Our long-term vision for HN is to have the site be as self-regulating as possible, and we've been working on a project code-named Modnesty (for 'moderation amnesty') to develop new ways to do that. Today we're releasing the first experiment from this project. The idea is to let the community make the final call on decisions made by HN moderators and software.

Currently, when an account is banned, a software filter trips, or enough users flag a post, the post goes [dead], meaning only users with 'showdead' turned on in their profile can see it. The trouble is that some posts end up [dead] when they shouldn't be. Banned accounts sometimes post good comments, software filters sometimes have false positives, and users sometimes flag things unfairly.

Today's new feature lets users rescue [dead] posts on a case by case basis. Beside the 'flag' link, you'll see a 'vouch' link to click when a post should not be [dead]. When enough users vouch for a post, the software will unkill it. Think of vouches as the inverse of flags: a flag says that a post shouldn't be on HN; a vouch says it should.

We'll review all vouched posts to make sure that they don't violate the HN guidelines. If we notice abusive vouches, we'll take away vouching rights (again, by analogy with flagging), so please vouch responsibly! Only rescue civil, substantive contributions to the site.

You need a little karma (currently 30) to see flag links, and the same threshold applies here. If you don't have 30 karma but would like to participate, email hn@ycombinator.com and we'll try to help.

I called this feature an experiment above. We'd like everyone to understand that when we say 'experiment', we really mean it. It's important to us to be able to roll out new ideas and drop the ones that turn out lame. HN's simplicity is its core design value, and we shudder at the thought of only adding features and never removing them. The freedom to retract bad experiments (like we did recently [1]) enables us to try more things, which benefits HN most in the long run. So if Modnesty turns out to have unintended bad consequences--which I hope won't happen, especially since we've been testing it for a while--we'll withdraw it. As always, whether it turns out bad or good is mostly a function of your feedback, so please be generous with it!

1. See my edit of https://news.ycombinator.com/item?id=10223645.

YC Digest - September 18-24

Top Stories from the YC World - September 18-24, 2015

YC Fall 2015 College Tour: Next week we'll be at Harvard, NYU, UIUC, and Columbia

YC Alum