Which startups have you invested in?

The ones that are currently launched are: Reddit, Loopt, ClickFacts, TextPayMe, Snipshot, Inkling, Flagr, Wufoo, YouOS, LikeBetter, Thinkature, JamGlue, Shoutfit, Scribd, Weebly, Virtualmin, Buxfer, Octopart, Heysan, Justin.TV, I'm In Like With You, SocialMoth, Xobni, Versionate, Adpinion, Anywhere.FM, Fuzzwich, Bountii, Songkick, Auctomatic, Disqus, Draftmix, Webmynd, RescueTime, Reble, Heroku, Tipjoy, AddMired, 8AWeek, Kirkland North, Wundrbar, Mixwit, and Snaptalent.

How can we get funding for our startup?

Apply for our next round of funding. We do two a year. Check back in a couple months for the application form for the next cycle. The application deadline will be in the fall.

What's the average age of people you fund?

25. A lot of people think it's younger because the press especially like to write about young founders.

How much do you invest?

Usually $5000 + $5000 per founder. So $15,000 for two founders, $20,000 for three. Occasionally we invest more. The goal is usually to give you enough money to build an impressive prototype or version 1, which you can then use to get further funding.

What does Y Combinator get out of this?

Stock in the startup, from 2-10% of it. Usually about 6%.

We don't really need the money. Does it still make sense to apply?

Half (maybe more) of the startups we fund don't need the money. And in fact the money is a only a small part of what YC does. The money we invest works more like financial aid in college: it ensures that the people who do need money can cover their living expenses while YC is happening.

What if we're doing something expensive?

We'll still fund you, but instead of trying to build something launchable in three months, the goal becomes to build an impressive proof of concept to take to later stage investors to raise more money.

Is Y Combinator an incubator?

No. The defining quality of incubators seems to be that companies work out of the investor's space. We think that's a bad idea; it makes founders feel like employees.

Do we need to write a business plan?

Not for us. We make funding decisions based on our application form and personal interviews. We love demos, but we never read business plans.

Where are you?

We're in Cambridge during the summer and the Bay Area during the winter.

Can a single person apply for funding?

Yes, but the odds of being accepted are much lower. A startup is too much work for one person.

Can we do it without moving to where you are?

Sorry, no. We tried this once, and by Demo Day that startup was way behind the rest. What we do, we have to do in person. We would not be doing a startup a favor by not making them move.

You can leave one founder at home, but the rest, including the CEO, have to live where we are that cycle.

Do we have to start a company in the US for you to invest in us?

Yes, but that's usually not a problem. It's easy for foreign nationals to start US companies (much easier than remaining here physically), and investors and acquirers prefer them.

Do we have to be US citizens?

No, as long as you can get here for at least three months. We've funded several startups founded by non-citizens.

Our group has two ideas. Can we submit two applications?

Ok. Just submit them from the YC accounts of different founders.

We've already been working on our startup for a while. Can we apply?

Of course. In fact, we consider it a good sign that you've already started working.

Don't incorporate, though, if you can avoid it. We're less likely to accept groups that are already incorporated, because it costs so much more to deal with existing documents than to start from scratch.

Do you only fund startups that write software?

We'll consider startups in any field, but odds are better for startups writing software, because that's what we understand.

Will you sign an NDA? How do I know you won't steal my idea?

No, we won't sign an NDA. No venture firm would at this stage. The informal commitment to secrecy on our application form is more than any VC would make.

In this connection you may want to read the first section of How to Start a Startup on the value of mere ideas.

Why didn't you accept our application?

We can't get into talking about individual applications. But don't take it personally if we didn't accept you. It could be simply that we didn't understand the domain well enough to judge.

The fact is, even the best investors are quite bad at picking winners. VC firms consider themselves to be doing well if 4 out of 10 companies they fund succeed.

We don't want funding, but will you give us advice?

Unfortunately we can't. We've invested in so many companies that helping them takes up all our time. But we've collected some general advice in our library.

Will you help us set up something like Y Combinator in our town?

There already is a Y Combinator in your town: Y Combinator. The seed funding business is national, not regional.

Will you help us set up something like Y Combinator in our country?

Actually, the seed funding business may even be international. We'll see. But for now at least we're waiting to decide what to do about other countries.

Why the name "Y Combinator?"

The Y combinator is one of the coolest ideas in computer science. It's also a metaphor for what we do. It's a program that runs programs; we're a company that helps start companies.

Are you hiring?

No, but many of the companies we've funded are.

Are you looking for investors?

We're not looking for investors in Y Combinator itself, but you're welcome to invest in the companies we fund. Twice a year the latest batch presents to investors: the next will be in August 2008, in Cambridge and Mountain View. If you'd like to be invited, send an email to x@ycombinator.com.

Apply | What We Do | People | Jobs | Quotes | FAQ | Contact | Lib | Legal