Don't play status games

Why you shouldn't apply to Y Combinator

Y Combinator (YC) is a startup accelerator. Probably the most popular and exclusive accelerator in tech, they accept less than 300 companies while receiving around 44k applications, resulting in an acceptance rate of less than 1%. By comparison, Harvard has an acceptance rate of 3.2%.

Twice a year, near the application deadline, you’ll hear a chorus of YC general partners telling you you should apply. It usually goes like this

• YC: You should apply to YC!

• Person: But I don’t have a product

• YC: You should still apply, we let in a lot of people with just an idea!

• Person: But I don’t have a co-founder

• YC: You should still apply, successful solo founders have made it into the program!

• Person: But I [perfectly valid reason not to waste your time]

• YC: You should still apply!

• Person: Wow, you’re being very encouraging, does this means I have a chance to get in?

• YC: Almost certainly not!

I have never heard anyone from YC ever give a reason not to apply. Why would they?

So why is YC so keen on getting as many applications as possible?

Maybe YC wants the best?

More applications means a better cohort right? It depends on how you filter and whether they have an algorithm.

Suppose they have an algorithm

In this case, maybe you do want a lot of applications. But why not open source the algorithm? Tell me I get N points if my startup is in one of these fields, -N points if its in one of these other fields, N points for ivy dropout, -N points for over 40, etc. You can still apply discretion, but give me some guidance.

Sure you’re giving up your “secret sauce”, but they do that all the time. Why do they publish so many resources on start up best practices? They even published the SAFE contract that ended up being standard for early stage VCs.

They could save tens of thousands of hours of valuable time of founders every year by just giving some guidance as to whether to bother applying.

Suppose they don’t have an algorithm

In that case, why do you need hundreds of applications for 1 spot? Assuming you have some error rate, diversification works with a lot smaller sample size. In fact, the 100th application is a net negative if you are actually looking carefully at all the applications.

I just don’t believe that the partners carefuly consider tens of thousands of applications for a few hundred spots. They obviously have some screening, which they don’t want you to know about

The truth is YC wants a low acceptance rate

The real reason for maximizing number of apps and the bi annual BS chorus of “everyone should apply” is because they want to maintain their exclusively and low acceptance rate. If not consciously, then subconsciously for sure because that's what all the incentives lead to.

If you know anything about YC, it’s that it has a low acceptance rate. In fact, that’s pretty much the only thing you need to know. Low acceptance rate means its exclusive and popular. Therefore they’re “the best” to start ups, limited parterns and other VCs. Its true for VCs, universities and night clubs. Exclusivity is good signal.

So don’t play into these stupid prestige games. As Peter Thiel said, competition is for losers. Things like YC are zero sum games. Much like landing a coveted Supreme Court clerkship, there are a fixed number of spots. Why be the umpteenth guy waiting on line to get into a nightclub that doesn't want you? And the same system that rejects you benefits from the hype and signal you helped them generate by your failed application.

So what's not zero sum? Friends and family rounds aren't zero sum. Your uncle is perfectly happy to keep his money in an index fund if your business plan sucks. Other methods of financing are less zero sum as well. At least your typical VC isn't rejecting more than 99% of their pitches. How could they manage logistically unless they had an entire cult of personality and mythology around their accelerator?