Cracking YC: A Guide for AI Startups
Today is the deadline for submitting applications to Y Combinator Fall Batch 2024. For the YC W24 program, 260 companies were selected from over 27000 applications. “With an acceptance rate under 1%, this was one of the most selective cohorts in YC history,” said Garry Tan, President & CEO of Y Combinator. Despite this, the startup accelerator is still processing hundreds of applications every hour and this might be the best time to apply. But there are definitely a few things to keep in mind before you get selected and have an opportunity to click a photo with the famous YC signboard. To start with, YC has its own list of Dos and Don’ts for getting started. This includes getting to the point, staying away from buzzwords, and showing the team that you won’t break within a year. As of early 2024, YC has funded over 4,500 startups with a combined valuation of more than $600 billion, making it an attractive lifeline for many emerging startup founders. Interestingly, this year, YC has also taken a lot of interest in Indian AI startups, as their focus is increasing on founders and application based generative AI. What can startups learn from all the announcements so far? Focusing on a Technical Team with a Technical Founder While YC will be at an advantage by investing in startups that will potentially hit millions of dollars, the YC programs are equally enticing for others as there is no requirement on formal degree or actual returns, YC simply bets on a founder and their idea. One of the most important aspects that inventors look at is the founding team of a startup. And since most of the current startups are tech and AI based, it is important for the founder to be technical. So much so that he/she should be able to build the product by himself, if not, “you are not a technical founder,” said Isabella Reed, founder of CamelAI, which is part of YCW24. To YC Applicants: If you can't build your product by yourself, you are not a technical founder. My degree is BMEN. I have 2 robotics publications and started my career as an application engineer for MATLAB. I am a not a technical co-founder.— Isabella Reed (@isabella_patane) August 26, 2024 Though some might disagree since tools like Cursor AI are changing the definition of what an engineer means, it is true that a startup which is building a tool, is a tech startup. For Indian founders, this is also a wake up call to start adopting tools like Cursor and others since it is now a given default for the future of tech products. One of the interesting strategies that founders are finding out is pitching their ideas to VCs and finding out the flaws and what can be improved, and some are still working on the pitch till 3 AM. One founder pitched to VCs and was able to get another co-founder for his startup, create a go-to-market strategy, and also send his product to beta users for feedback. Those who can’t get VCs, are asking people on X to help them with their YC applications and pitches. Which in many cases is turning to a roast show. Meanwhile, one of the most important things for founders is to remember to not become a generative AI influencer on the way to YC. Though it can be fun to watch and preach, it is not helpful for the pitch and the process of getting selected. Fun watching every new YC founder become a LinkedIn influencer. Whole new group of yappers every few months :D— Sobhan Nejad (@sobhan_nejad) August 26, 2024 The most important thing to keep in mind is showing traction, picking a specific metric to back, a passion for the startup you are building, while also presenting the honest flaws of the product. Don’t Get Blacklisted It is not easy to get into YC. Amartya Jha, the co-founder and CEO of CodeAnt AI, which recently got into YC, narrated in a post how his team got rejected the first time because they couldn’t explain their product well to the investors. Despite this and the fear of getting blacklisted, they made a 45-minute video explaining their product and sent it to YC again. The following week, they managed to get another interview with YC and were finally selected! Though an inspirational story, the lesson is to explain your product well in the first go. Another Indian startup Asterisk by Mufeed VH, the creator of Devika, also got into YC. The team started with the Stition.ai and building cybersecurity products and is now finally into YC, becoming the first startup to get into YC from Kerala. Given the small acceptance rate, founders keep scrolling their email inbox to find the invitation letter for the interview. Though it might be difficult to get an acceptance letter, it is definitely useful to at least fill out the form. “It’s the smallest set of questions you can ask to get a clear signal about a startup, so it’s also the smallest set of questions you can answer to get a clear signal about your own startup,” said Pete Koomen, group partner at YC. It's useful to fill out a YC application even if you don't submit it. It's the smallest set of questions you can ask to get a clear signal about a startup, so it's also the smallest set of questions you can answer to get a clear signal about your own startup. https://t.co/ZENcFkWBGo— Pete Koomen (@koomen) August 27, 2024 Moreover, consistency is king. Kashif Ali, the founder of TaxGPT, which is part of the YC S24’s batch said that he applied seven times with three different companies in the last four years, and finally got in at the 8th time. At the same time, not everyone needs YC. If you are a true entrepreneur, you can be successful without YC. Keep applying though. P.S. No sweat equity. https://twitter.com/CCgong/status/1827441029114736739 [This is an opinion and not a promotional article]
Since most of the current startups are tech and AI based, it is important for the founder to be a ‘technical founder’.
27th August is the deadline for submitting your applications to Y Combinator Fall Batch 2024.
["AI Startups"]
["Go", "AWS", "AI", "cloud_platforms:AWS", "GPT", "ViT", "generative AI", "llm_models:GPT", "R", "AI Startups", "startup"]
["AI", "generative AI", "AWS", "R", "Go", "GPT", "ViT", "startup", "llm_models:GPT", "cloud_platforms:AWS"]
Mohit writes about AI in simple, explainable, and often funny words. He's especially passionate about chatting with those building AI for Bharat, with the occasional detour into AGI.