Y-combinator is an accelerator from silicon valley that provides early-stage seed investment for startups and is the biggest name among accelerators, having accelerated some of the most successful startups of the 21st century like AirBnB and Dropbox.
Over time, Y-Combinator has grown beyond the image of an accelerator in the world of startups. Y-combinator is often referred to as a Bootcamp, where startups get nurtured by world-class Entrepreneurs & Mentors. Beyond the intensity, Y-combinator is also a platform for building meaningful connections and gaining an edge for your business. As getting into Y Combinator is seen by many startups as the ultimate stamp of approval, it’s not surprising that over 10,000 startups apply during each cycle despite an acceptance rate of only 1.5% and one fifth YC startups failing.
While you might have plenty of reasons to consider applying to Y-Combinator, here are the top 3 reasons to do so.
Access to immense capital
From the winter 2019 batch, Y-Combinator started to invest around $150,000 for 7% equity. No more. No less. No negotiation. That’s the deal. However, if you can double or triple your valuation, that 7% will become very small. Apart from this, many high performing investors look at YC startups, and few will be there on demo-day itself to talk to you.
Connect with the right people
- Y-combinator gives you access to its entire alumni and hundreds of investors & mentors. It is very much likely for those alumni to become your clients who include Dropbox, Airbnb, Stripe, Twitch, Reddit and it will be a sin if not said that, You can also get a ton of value-based feedback from these alumni of founders.
- Y-combinator primarily, though not solely, invest in companies that focus on or wants to enter the American market. So if the American market is one of the next steps for your business, then Y-combinator could open the gates for you with a wide range of the network.
- YC startups provide benefits to themselves through discounts on their products & services. Even though you fail to partner with one of them, the deal is still on.
Gain free publicity
Not only investors are waiting to get access to the many new promising YC startups, news headlines too. Absolutely with 0$ generated as revenue, many American, International & your local media outlets would love to cover you if you are selected. If in case no VC or any stakeholder knows about you so far, Now they will.