I think that for a first-time entrepreneur, that's definitely worth it. I wish I started my first company (ten years ago) at something like YC. We did so many mistakes we could have avoided , it would have been a huge time saver.
The question I'm asking myself today is: is it worth it for an experienced entrepreneur? As a so-called successful entrepreneur who has had good exits in the past, you already have a network of investors, credibility, and while any advice is always good to hear, it's not like you are just starting for the first time. But still, with YC you get the alumni network, a lot of audience for your product launch, and more competition among investors (which alone could "reimburse" the 2%~9% you'll "lose" to YC).
It would be great to hear the opinion of experienced entrepreneurs.
After having thought a great deal about it, it's worth it for two reasons in my mind:
1) the recognition, the prestige, the 'YC' name that gets you really good deals, which entails VCs (the good ones) coming to you, press taking you more seriously, potential candidates being more enticed working for a 'YC' company (so the normally difficult task of finding early employees/co-founders is made considerably easier)
2) You get to be in the YC network (in some senses this is comparable to being in the Harvard Alumni association, where being a friend of some guy can mean you can become a C-level or VP of some company). Moreover: Being friends with other talented founders, getting advice from people who know their stuff and have done many things before, and a lot of times getting good deals from them and their startups (if you happen to be low on cash [1]).
[1]: Speaking of which, a possible third reason is the seed money.
If you are going to raise money, it is probably worth it. There's some level of "past success" that would be a good stand in, but it's a really high bar ... which is why you see people repeat YC reasonably often.
At the very least, YC is an ally if you run into issues with other investors. They are incredibly pro-founder (as is SV Angel) and not afraid to wave a bat around.
I can't speak for YC but I can speak about Techstars--I was in the first Austin Techstars class, and our Demo Day was a week ago.
I have had one successful tech company exit and had already raised a seed round for my current business when we decided to join Techstars. I can say this: Not only was it easily worth the 6% equity stake, but it fundamentally changed how I run a business.
I thought I knew what I was doing pre-Techstars, having run a tech company before and having a technical background. Heck, I have even spoken about Lean Startup at conferences! But now I look back on where I was three months ago and I am fundamentally a different person. One who now really has a shot at running a successful software startup.
Having checked in with several people who've gone through YC, they did not experience as much of a shift as I did. I think the credit goes to the unique experience of Techstars throwing you in 100+ 1:1 meetings with successful entrepreneurs in a 2-3 week period. You meet with people who have run and sold companies worth over a billion dollars. And at some point you wake up and realize, "If I have to go in there one more day and talk to a hugely successful entrepreneur again and I don't have my shit together again (because everyone gets ripped to shreds the first week) I am going to snap."
And then something kicks in inside of you and you realize you have to get it together. On the wall the days tick down to Demo Day whether you want them to or not. And the mentors tear down your ideas every day.
It's that constant tear-down and the internal strength and direction it gives you that is invaluable. I can pitch my business now in my sleep and get people motivated about it. You have not perfected your pitch until you have had it ripped apart by 100 ridiculously successful people. It was one of the most painful experiences I've ever been through...but here I am, on the other side, and not only did I survive but I've discovered confidence and clarity that I never knew I had.
Techstars is something I'd recommend every founder experience. Again, I can't speak for YC or any other accelerator, but I can tell you if every founder went through what I've just been through in the past 90 days, we wouldn't have sad startup failure stories on the front page of HN very often.
Get users, revenue, and growth and go through the grind of raising capital. You'll find out the black box that is the mind of investors and then you'll come to appreciate the algorithmic efficiency of YC.
I think that for a first-time entrepreneur, that's definitely worth it. I wish I started my first company (ten years ago) at something like YC. We did so many mistakes we could have avoided , it would have been a huge time saver.
The question I'm asking myself today is: is it worth it for an experienced entrepreneur? As a so-called successful entrepreneur who has had good exits in the past, you already have a network of investors, credibility, and while any advice is always good to hear, it's not like you are just starting for the first time. But still, with YC you get the alumni network, a lot of audience for your product launch, and more competition among investors (which alone could "reimburse" the 2%~9% you'll "lose" to YC).
It would be great to hear the opinion of experienced entrepreneurs.