[mtricot]

YC does play an important role to get connections to VCs but at the end of the day, "YC" is a signal for VCs, not a criteria.

VCs spend time looking at the team, the past achievements, the product and most importantly the existing users. They also try to invest in industries that they know about.

In our case the team experience was important. We had solved the problem internally at other companies (and the scars that come with it!).

In one of John's response, he mentioned that we've been talking to many VCs. The reason was that we were looking to talk to the ones who understand deeply the problem and the market we're addressing. No matter how good your product or deck is, if you're pitching a calendar app to a VC who is specialized in deep tech, you probably won't get them on your cap table.

[jacquesm]

To determine this you'd have to track how many companies raise funds and how much they raise (at what valuation) both inside and outside of YC. From my own view on this supported by quite a bit of data I would say that YC is as close as you're going to find to a stamp of approval in the start-up scene, it has a substantial effect on your chances to raise funds and on the amount you will raise when you do.

[jeanlaf]

Actually, Airbyte is a pivot from a first product. And we struggled a lot to raise with the previous product, even though we were fresh out of YC. YC is an indicator but not enough by itself.

[jacquesm]

Yes, but you did raise. Now ask yourself if you would have raised this round without YC backing and the same product.

Time will tell if you will succeed, best of luck to you and your team.

But keep in mind that raising money is not success in itself.

[jeanlaf]

Raising money is not a success indicator at all. We agree. Having your first paying customer is typically a much more important one :).

[kenneth]

One of my best investments is a company I turned down at demo day, but who pivoted a year later after running out of funds and finding a completely new product. I gave them their first post pivot angel check and they're well on their way to unicorn status now.

Big fan of looking at what YC founders do 1 year out of the program. YC backs companies in large part on founder quality even if the original idea isn't a winner, and I've made quite a few strong bets on YC founders when they needed a reset a bit later. (The good ones keep the original company cap table intact to take care of their pre-reset investors. That's a huge positive signal for me coming in as fresh blood.)

[jacquesm]

This is very smart.

[lejohnq]

Out of curiosity, what was the first product?

[kenneth]

Not only that, but it also materially improves your business for many B2B startups given the network of companies who will do you a favor and sign up for your service during the program. It helps kickstart early traction.

[Pyramus]

This has to be highlighted more.

The YC stamp is a door opener, a necessary condition to get funded, but not a sufficient one.

The primary way YC is beneficial for raising VC money is in the way the force founders to focus on the metrics that matter, say user growth etc. Which happen to be also crucial for VCs.