How to Apply for Y Combinator Funding for Startups
Some companies may need no more than seed funding. Others will go through several rounds. There is no right answer; how much funding you need depends on the kind of company you start.
Y Combinator goal is to get you through the first phase. This usually means: get you to the point where you’ve built something impressive enough to raise money on a larger scale. Then Y Combinator can introduce you to later stage investors or occasionally even acquirers.
Y Combinator make small investments in return for small stakes in the companies they fund.
All venture investors supply some combination of money and help. In Y Combinator case the money is by far the smaller component. In fact, many of the startups Y Combinator fund don’t need the money. Y Combinator think of the money they invest as more like financial aid in college: it’s so people who do need the money can pay their living expenses while Y Combinator is happening.
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How do Y Combinator choose which startups to fund?
Y Combinator will fund companies from anywhere in the world. they fund companies doing everything from building mobile apps to diagnosing cancer.
Y Combinator will happily fund companies that just started and have nothing more than an idea. And they’ve funded companies that had over $20M in annual revenue and over 50 employees.
International founders, please note: if your company is already incorporated somewhere other than the United States, Canada, Singapore or the Cayman Islands, in order to participate in YC you will need to create a parent company that is in one of those jurisdictions. The existing company will then become a subsidiary of the new United States, Canada, Singapore or Cayman parent company. While lawyers will drive this process, it will require a significant effort on your part.
You must have at least 10% equity in the startup to be considered a founder by Y Combinator. Only founders can come to interviews if invited or attend batch events if accepted.
How to Apply to Y Combinator:
Y Combinator is accepting applications from startups for the Winter 2021 funding cycle. It will take place from January–March 2021. Due to the COVID-19 situation the Winter 2021 batch will be remote. see Y Combinator announcement for more details.
If you want to apply, submit your application online by 8 pm PT on September 23. Startups that submit early have a small advantage because Y Combinator have more time to read their applications. And you can submit after the deadline - though keep in mind that if you apply late, Y Combinator can’t guarantee the exact date of when you’ll hear back from them with a decision.
On October 21 by 11:59PM PST, Y Combinator will invite the startups that seem most promising to talk to them either in late October, November, or early December.
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This batch of Y Combinator will be remote due to COVID-19. It will be much the same as every other batch. Y Combinator’ve worked hard to ensure they can provide the same networking, advice, and fundraising help that YC always provides.
During the 3 month cycle Y Combinator invite speakers every week to talk about their startup and what they learned.
Every week or two, you’ll have group office hours, where you’ll talk with 5-8 companies and your YC partners for an hour. These group office hours are a chance to get to know companies in your batch that are going through similar things and to help each other.
During and after the 3 months Y Combinator introduce startups individually to people who could help them. The founders of other YC-funded companies tend to be especially helpful. Today the YC alumni network is probably the most powerful network in the startup world.
About 11 weeks in, Y Combinator organize an event called Demo Day at which the startups present to a carefully selected, invite-only audience.
YC doesn’t really end after 3 months; only the talks do. Y Combinator continue to give advice and make introductions as long as their startups need and so does the informal network of YC-funded companies.
Click here to Apply Winter 2021
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