Applying to Y Combinator? 3 tips from a former YC partner | Summary and Q&A

TL;DR

Get a better chance at Y Combinator by emphasizing real solutions, avoiding buzzwords, and using an inverted pyramid structure.

Key Insights

• 🔍 Point 1: Show, don't tell - Start your application with a compelling story about a specific user and problem that your solution solves. Mention any real products or users, and emphasize if there are paying customers.
• 💰 Point 2: Establish your position - Y Combinator accepts applications at various stages, so it's important to clarify where your company stands on the spectrum. Highlight your current revenue and growth potential.
• 💡 Point 3: Highlight market opportunity - Demonstrate how your business can be worth a billion dollars or more. Show potential investors that there is a realistic path to generating $100 million in annual revenue within the next five to ten years.
• 💪 Point 4: Differentiate yourself - Show why your solution is unique and why customers choose you over competitors. Mention any special source or advantage that sets you apart.
• ✅ Point 5: Avoid buzzwords - Use plain English to communicate your startup's problem, solution, and differentiation. Y Combinator and great investors focus on understanding your idea, not buzzwords.
• 💡 Point 6: Simplicity is key - A great pitch is simple and straightforward. Use understandable statements that, when pieced together, reveal a big idea.
• 📝 Point 7: Use the inverted pyramid - Structure your writing to start with a clear conclusion and then provide proof and evidence. This ensures that readers can quickly understand and assess your idea. ⏰ Point 8: Take advantage of resources - Make use of available resources, such as feedback and advice from experienced individuals like Garry Tan, who has worked with many Y Combinator companies. Visit bit.ly/garrytan-ychelp for more information.

Transcript

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Questions & Answers

Q: How should I start my Y Combinator application?

When starting your Y Combinator application, it's important to showcase a specific user problem and how your solution has effectively solved it. Emphasize any real users and revenue you have to validate your solution.

Q: How can I demonstrate the potential market size for my business in a Y Combinator application?

In your Y Combinator application, you should show how your business has the potential to be worth a billion dollars or more. This can be done by providing a realistic plan to achieve 100 million dollars a year in revenue within the next five to ten years.

Q: Should I use buzzwords in my Y Combinator application?

No, it's best to avoid using buzzwords in your Y Combinator application. Y Combinator and great investors value plain English communication and understanding your business in simple terms. Focus on explaining your problem, solution, and unique differentiators clearly.

Q: Why is an inverted pyramid structure important in a Y Combinator application?

An inverted pyramid structure is important because it immediately presents the conclusion or main point of your application. This allows readers to quickly understand your idea, and the supporting proof follows to reinforce its validity. It is a way to effectively use your readers' time and engage them from the beginning.

Summary

In this video, Garry Tan, a former partner at Y Combinator, provides three tips for creating a better Y Combinator application. He advises entrepreneurs to "show, don't tell" by highlighting real users, their problems, and how their solution solves those problems. He emphasizes the importance of establishing where the company falls on the startup spectrum and demonstrating the potential for a billion-dollar market opportunity. Tan also discourages the use of buzzwords and encourages applicants to use plain English to effectively communicate their ideas. Finally, he recommends using the inverted pyramid writing style, starting with the conclusion and then providing proof to support it.

Questions & Answers

Q: What is the first tip Garry Tan gives for creating a better Y Combinator application?

Garry Tan advises applicants to "show, don't tell" by starting with a story about a specific user and problem. He suggests explaining why those people require the solution and how it has been successfully implemented. If there are real users using the product and paying for it, that should be mentioned as well.

Q: How does Garry Tan suggest applicants establish where their company falls on the startup spectrum?

Garry Tan explains that Y Combinator receives applications from a wide range of companies, from those in the early stages to those already generating significant revenue. He emphasizes the importance of determining where a company stands in terms of growth and revenue and clearly communicating that to Y Combinator. If the company is further along, it is essential to highlight the market opportunity and potential for significant revenue growth.

Q: What does Garry Tan mean by "showing that the problem you're trying to solve and the solution you've created can result in something that can truly be massive"?

Garry Tan explains that Y Combinator is looking for successful startups that can grow rapidly. He suggests demonstrating that the problem being solved and the solution offered have the potential to generate a significant amount of revenue. By showing that the company's business or problem set could be worth a billion dollars or more, applicants can convince investors that their startup has the capacity to achieve substantial growth.

Q: Why does Garry Tan caution against using buzzwords in the Y Combinator application?

Garry Tan believes that Y Combinator does not prioritize buzzwords when evaluating applications. He suggests using plain English to effectively communicate the problem, the solution, and what sets the company apart from competitors. Instead of focusing on using special terms or lingo to fit into a specific crowd, applicants should strive to showcase their unique ideas and demonstrate that they have a clear understanding of their startup's value proposition.

Q: How does Garry Tan recommend applicants approach the writing style of their Y Combinator application?

Garry Tan advises using the inverted pyramid writing style. Instead of following the traditional structure of beginning with a topic sentence, exposition, and conclusion, he suggests starting with the conclusion upfront and then providing supporting proof. By doing so, applicants can immediately convey the main idea and back it up with evidence, allowing readers to quickly determine the validity and relevance of the startup.

Q: Why does Garry Tan believe that the inverted pyramid writing style is effective for Y Combinator applications?

According to Garry Tan, the inverted pyramid writing style optimizes the readers' time and allows them to grasp the essential information right away. By presenting the conclusion first and following it with corroborating evidence, the application becomes more effective in quickly communicating the startup's value and potential. This style ensures that the reader knows what the startup does and why it is significant without having to search for that information within the text.

Q: Are the tips Garry Tan provides only applicable to Y Combinator applications?

No, Garry Tan mentions that while these tips are valuable for Y Combinator applications, they can also be beneficial for any pitch situation. He believes that a great pitch relies on simplicity and clear statements that, when viewed together, form a compelling and substantial idea. Therefore, entrepreneurs can apply these tips to effectively communicate their startup's value in various settings.

Q: What is Garry Tan's giveaway in this video?

Garry Tan's giveaway is his time and advice. At the end of the video, he provides a link where viewers can submit their Y Combinator application for him to review and provide feedback. As someone who has worked with Y Combinator companies for years, he offers his expertise as a resource to assist entrepreneurs in improving their applications.

Q: How does Garry Tan equate his experience in high school newspaper with startups?

Garry Tan draws a parallel between writing for high school newspaper and creating a startup pitch. He explains that just as high school newspaper articles are structured with a topic sentence, exposition, and conclusion, many individuals are taught to write in the same manner throughout their school days. However, when it comes to Y Combinator applications and startup-related writing, he recommends using the inverted pyramid style. By placing the conclusion at the beginning and providing evidence afterward, the startup pitch becomes more effective in capturing and maintaining the reader's attention.

Q: What does Garry Tan consider a great pitch?

Garry Tan believes that a great pitch is not one that impresses the listener with complicated concepts or jargon. Instead, a great pitch is composed of simple and understandable statements arranged side by side. When these statements are viewed collectively, they present a significant and impactful idea. Tan emphasizes the importance of demonstrating a clear understanding of the startup's value and potential, rather than focusing on using buzzwords or fitting into a specific crowd.

Takeaways

Garry Tan provides three tips to improve a Y Combinator application: "show, don't tell" by emphasizing real users, their problems, and the solution; establish where the company falls on the startup spectrum and showcase the potential for a billion-dollar market opportunity; avoid using buzzwords and favor plain English to effectively communicate ideas; and use the inverted pyramid writing style to lead with the conclusion and follow up with supporting evidence. These tips can also be applied to any pitch situation.

Summary & Key Takeaways

• Start your Y Combinator application by showcasing a specific user problem and how your solution solves it, emphasizing if you have real users and revenue.

• Demonstrate the potential market size for your business and the ability to achieve significant revenue growth.

• Avoid using buzzwords and focus on communicating your unique solution and perspective in plain English.