Which startups have you invested in?

The ones that are currently launched are: Reddit, Loopt, ClickFacts, TextPayMe, Snipshot, Inkling Markets, Wufoo, LikeBetter, Thinkature, JamGlue, Scribd, Weebly, Virtualmin, Buxfer, Octopart, Heysan, Justin.TV, I'm In Like With You, SocialMoth, Xobni, Zecter, Adpinion, Anywhere.FM, Fuzzwich, Bountii, Songkick, Auctomatic, Disqus, Draftmix, Appjet, Webmynd, RescueTime, Reble, Heroku, Tipjoy, Addmired, Socialbrowse, Kirkland North, Wundrbar, Chatterous, Mixwit, Snaptalent, Clickpass, Insoshi, MightyQuiz, 280 North, Dropbox, Posterous, Anyvite, Slinkset, TicketStumbler, PopCuts, Ididwork, Startuply, Picwing, CO2Stats, PollEverywhere, Backtype, ContestMachine, and Frogmetrics.

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 spring.

We've already been working on our startup for a while. Is Y Combinator appropriate for us?

We've funded quite a lot of startups like that. In fact, we especially like them. We can probably help any startup that hasn't already raised a series A round from VCs.

Don't incorporate, though, if you can avoid it. Especially as an LLC. It's much more complicated for us to deal with existing paperwork than to start from scratch.

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.

Can you recommend other investors who might be interested in our idea?

When you refer someone to an investor, you're also recommending them, and you can't recommend people you don't know. If you're looking for investors, your best bet is to find friends of friends who've started or worked for startups, and ask for intros to their investors.

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.

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.

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.

I have a great idea for a startup, but I'm not technical. Will you still fund me? Can you help me find programmers to implement my idea?

We'll consider funding you, but your chances are about ten times better if you find yourself a technical cofounder.

It's much better if you find one yourself through friends of friends than if we introduce you to someone. Teams thrown together for the purpose of starting a startup usually fall apart under stress. You need some kind of personal connection.

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.

Can you get us visas?

No, sorry, we don't do that. You'll have to figure out visas for yourself. If you know people from previous YC-funded companies who came from outside the US, we suggest you ask them for advice. They understand the options better than we do.

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

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

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?

Strange as it may sound, the better your application was, the less likely there is to be an answer to this question. So don't take it personally. 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.

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.

Where are you?

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

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.

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 did you choose 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?

We aren't, 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. We have Demo Days twice a year (in March and August) at which the latest batch of startups present to investors.

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