I pitched YC, was rejected, just closed a multi-million dollar round.
55 comments
I know one company that was rejected by yc that is happily investor free, profitable, and doing quite well for themselves.
I know another guy that was rejected from YC and just sold his company to another company all of you have heard of.
YC is great, but it's one of many paths. Every time I read, "YC rejected me but....." it sounds like "Harvard rejected me, but somehow my life didn't end."
Sometimes you wonder how a company managed to exit with their idea but people count for so much. I have friends that, if they had the dumbest idea in the world, I would put my money down because betting against them is a losing game. If it sounds ludicrous, is because you've never had friends like that.
I know another guy that was rejected from YC and just sold his company to another company all of you have heard of.
YC is great, but it's one of many paths. Every time I read, "YC rejected me but....." it sounds like "Harvard rejected me, but somehow my life didn't end."
Sometimes you wonder how a company managed to exit with their idea but people count for so much. I have friends that, if they had the dumbest idea in the world, I would put my money down because betting against them is a losing game. If it sounds ludicrous, is because you've never had friends like that.
To quote Randy Pausch: "The brick walls are not there to keep us out, they are there to give us a chance to show us how badly we want something."
They are all in your head anyway. I've been thinking about the Harry Potter thing of how they get to the train station for wizarding school by running straight at the brick wall with confidence, which carries them through it and to a different world, where a train awaits to whisk them off to a magical place, a place to learn yet more magic. I think it's a great metaphor. The brick walls aren't really there. Just go at them head on, believing they aren't really there.
Oh, and there's no spoon either.
Best of luck.
They are all in your head anyway. I've been thinking about the Harry Potter thing of how they get to the train station for wizarding school by running straight at the brick wall with confidence, which carries them through it and to a different world, where a train awaits to whisk them off to a magical place, a place to learn yet more magic. I think it's a great metaphor. The brick walls aren't really there. Just go at them head on, believing they aren't really there.
Oh, and there's no spoon either.
Best of luck.
I'm a huge Harry Potter fan, but it never occurred to me to relate that scene to startups in that way. It makes me smile. :) However, I would tweak the "solid wall" metaphor a bit in the context of startups. For example, running full ahead with a bad idea will never magically become a good idea simply by upping confidence level. I would say the metaphor is more like Book 2 where they hit the wall and bounce back painfully (because Dobby sealed it) but find another way to get to school anyway. I think that's more what startup success looks like. Simply having the confidence to run forward is more about how to look at life in general I'd say, when we talk ourselves out of attempting to do things for reasons which are really nothing but false fears.
I've had a lot of dreams in my life to the effect of coming to a brick wall and reaching forward and turning the door handle that didn't exist until I reached for it and opening a door and going through the brick wall, shutting it and watching it turn back into a brick wall for my pursuers. Sorry I can't explain better what needs to go on in one's head to walk through brick walls. But it can be done.
Peace.
Peace.
Just because you are rejected by VC's or YC doesn't mean anything. Even best of the VC's make mistakes, here is a firm which missed companies like Apple, Intel, Google, Paypal, Ebay etc...
http://www.bvp.com/Portfolio/AntiPortfolio.aspx
http://www.bvp.com/Portfolio/AntiPortfolio.aspx
Why do people say they got funded as if that's it. They've made it. Job done. Success is now a given.
I'm not convinced ability to get funded matches with likelihood of profitability.
I'm not convinced ability to get funded matches with likelihood of profitability.
Why do people say they got funded as if that's it.
Where did the OP say or imply this? In fact he even says this is only the beginning of the journey.
FWIW, I took his post as an inspirational thing. The demographic of YC applicants seems to skew towards younger people, sometimes with a bit too much pg-love. Getting rejected by your "idol" can be very discouraging, especially to an applicant who may not have gone through such a rejection before (eg: they've been mostly accepted to the schools and colleges of their choice) and/or has not had a lot of other career experience so their "one big dream" was just seemingly crushed.
IMO, I think it would be really cool for pg to create a roster list someplace of YC rejects that got alternate sources of funding and/or went to other ventures deemed successful. It could help some of the rejected applicants understand that YC is one option, not the option.
Where did the OP say or imply this? In fact he even says this is only the beginning of the journey.
FWIW, I took his post as an inspirational thing. The demographic of YC applicants seems to skew towards younger people, sometimes with a bit too much pg-love. Getting rejected by your "idol" can be very discouraging, especially to an applicant who may not have gone through such a rejection before (eg: they've been mostly accepted to the schools and colleges of their choice) and/or has not had a lot of other career experience so their "one big dream" was just seemingly crushed.
IMO, I think it would be really cool for pg to create a roster list someplace of YC rejects that got alternate sources of funding and/or went to other ventures deemed successful. It could help some of the rejected applicants understand that YC is one option, not the option.
Yeah maybe I'm being harsh as usual. If I got funding I'd start panicking and thinking to myself "shit now I have to make them a return"... But it often feels like announcements of funding are more like "yay we have cash! Lets buy an office, some go-karts, etc"
My personal experience has been that there's only one group you need to impress - your users/customers. If no one else believes in you so what?
Likewise, if you manage to get funding (convince one person you might have future success), but have no users/customers, it's a bit "meh".
Being rejected from X but accepted at Y still doesn't demonstrate if the idea/person behind it/etc will be successful or not.
I'm rambling now so I'll stop.
My personal experience has been that there's only one group you need to impress - your users/customers. If no one else believes in you so what?
Likewise, if you manage to get funding (convince one person you might have future success), but have no users/customers, it's a bit "meh".
Being rejected from X but accepted at Y still doesn't demonstrate if the idea/person behind it/etc will be successful or not.
I'm rambling now so I'll stop.
Agreed. Getting funded IS being profitable for some startups. It is as profitable as some startups will ever get, relative to the financial position of the founders prior to funding. And that's fine. Not all startups will be a success.
I think funding becomes the thing to do moreso than it becomes the right business decision. I'm more in the bootstrapping camp which is what I'm doing with my startup.
I think funding becomes the thing to do moreso than it becomes the right business decision. I'm more in the bootstrapping camp which is what I'm doing with my startup.
A few years ago I was involved in a start up in the medical domain (software, not hardware). My cofounders and I got "funded" by winning business school competitions. Although the amounts are not huge, getting funded was big help for 2 main reasons. First, it's nice to know that you're not the only one who believes in the idea. It, in a way, gives you legitimacy and the power (mentally) to move forward. Second, money is a great motivator because you now have to answer to someone. Anybody giving you money will want to know what you did with it. Some you really need to spend it wisely and make progress.
If you don't mind my asking, what happened to that startup?
Fair questions.
A bit of a background first. My co-founders were: an MBA student with a healthcare concentration (Wharton), an MD/PhD student (Columbia), and me, the techie (grad student Columbia). Unfortunately for the start-up (and fortunately for my co-founders), they graduated and moved to Denver (to work at a healthcare company) and San-Francisco (residency), respectively. Although I wanted to continue working on things, with 66% of the founding team away and unwilling to commit to putting in the time, the project is bound to fail. Now, one may argue that I should have continued on my own, which is a fair point to make. However, what I've learned about healthcare is that it's a VERY tough market. It is not because of there exists some crazy technological challenge that the tech world has never seen before, rather because of the people in the industry and the industry's regulations. Physicians and institutions are VERY suspicious of anyone even remotely trying to enter their "domain," and they would thwart any attempt. Our intention was to help them with their workflow, so they could see more patients and thus make more money. When you approach MDs, for the most part, they fear that you may try to replace them (although that was not our intention). It follows with immediate resistance. Also, if you were to get into this domain, you should know that you can't just put up a website in 4 hours and start testing (Snowcolypse!! :-) ). Medicine is so "academic" that people want to run clinical trials, etc. In short, there's a lot of bureaucracy.
Interestingly, I now lead the implementation of the clinical data warehouse at a major medical institution in the US (though I was always a programmer, not a DB or BI guy. Sortta fell into this position). The other week I spoke to the director of the stroke center at a medical institute in Brooklyn NY. A 50-something year old guy, one of the only 1200 stroke experts in the US. Super nice guy, super smart (taught himself python and Fortran to have a common language with the technies and to know when they're trying to pull his leg). He's very much into technology and its applications within medicine (he's trying to push telemedicine to strokes, because every second counts). As he put it, "the problem with healthcare is that the stakeholders think that this is the most complicated domain in the world. People are so arrogant to think nobody has tackled these technological problems before." They, therefore, push off any suggestion for improvement (what worked for Pfizer, BMW, or Goldman Sachs, who have millions of transactions a second, will not work for us!) Same sentiment exists at my current employer.
It is a milestone, a worthy and notable achievement. I don't see that this post inferred otherwise. Actually, ycreject says: "Raising funding is only the beginning of this journey..."
Getting rejected by YC was the best thing to happen to my startup and to improve my motivation.
It's impressive that YC helps founders succeed by putting them through a short but intense program.
It's even more impressive that YC helps founders succeed by rejecting their applications, and motivating them to try harder.
The latter is a truly scalable business model. Maybe YC should get a chunk of stock simply for letting companies apply to the program...
It's even more impressive that YC helps founders succeed by rejecting their applications, and motivating them to try harder.
The latter is a truly scalable business model. Maybe YC should get a chunk of stock simply for letting companies apply to the program...
I love the tenacity, Best of luck boys!
I believe YC applications are open now, so its great timing actually!
totally agree with the 'if at first you don't succeed' aspect of this post, but you have a different co-founder and a different concept now, so your prior rejection, while interesting, is not really related to your current situation.
I agree. I certainly read the title as meaning "I just closed funding on a pitch that PG rejected".
Also, congratulations. Glad you didn't give up!
Also, congratulations. Glad you didn't give up!
I certainly read the title as meaning "I just closed funding on a pitch that PG rejected".
YC explicitly says they're looking for the best founders, not necessarily the best idea.
In other words they're rejecting you, not your idea.
YC explicitly says they're looking for the best founders, not necessarily the best idea.
In other words they're rejecting you, not your idea.
If you think of it like this, you'll poison yourself. Maybe reframe it as "Declined the opportunity to invest in this team at this time."
(See also: college, job offers, consulting engagements, and -- took me decades to learn this -- dating.)
(See also: college, job offers, consulting engagements, and -- took me decades to learn this -- dating.)
I agree with you 100%.
That said, I do think it's worth noting that the pleasant fiction of "it was the idea, not us" is patently false for YC.
A healthier (and more accurate) way to think of it would be to say that they're rejecting their perception of the team, rather than the team itself.
That said, I do think it's worth noting that the pleasant fiction of "it was the idea, not us" is patently false for YC.
A healthier (and more accurate) way to think of it would be to say that they're rejecting their perception of the team, rather than the team itself.
They're rejecting the team, which could mean two good people who don't fit well together.
While this is strictly true, this guy already beat out 90+% of applicants just to get to the interview phase. While it's disappointing not to go all the way, reaching that far is a meaningful accomplishment.
This doesn't explain how some people get rejected for one idea and get accepted with another one.
Congrats on closing a round of financing, but have you had your YC rejection in the back of your mind all along?
If you had pitched with the same co-founder and same idea and still got funded, you could have given PG a big 'told ya so', but different idea, different co-founder, is really a different sitation. Plus, I'm sure YC doesn't invest in many ideas/people that they wish they could, as they have to make selections on very little details.
Out of curiosity, what stage are you at with the new company? Did you close your round with a working prototype? moderate user traction? existing customers?
Again, congrats on the funding. Best of luck with the new biz.
If you had pitched with the same co-founder and same idea and still got funded, you could have given PG a big 'told ya so', but different idea, different co-founder, is really a different sitation. Plus, I'm sure YC doesn't invest in many ideas/people that they wish they could, as they have to make selections on very little details.
Out of curiosity, what stage are you at with the new company? Did you close your round with a working prototype? moderate user traction? existing customers?
Again, congrats on the funding. Best of luck with the new biz.
Working prototype w/ alpha users, but there's a lot of significant tech involved - i.e. it's not a rails app.
And no, YC hasn't been on my mind at all, nor is this a 'told ya so' to PG. I do hang out on HN under a different name though so I thought I'd post for anyone who was feeling frustrated in their own journeys since I know that in-the-moment rejection can sting disproportionally more than during the time that it actually matters, i.e. the rest of your life.
And no, YC hasn't been on my mind at all, nor is this a 'told ya so' to PG. I do hang out on HN under a different name though so I thought I'd post for anyone who was feeling frustrated in their own journeys since I know that in-the-moment rejection can sting disproportionally more than during the time that it actually matters, i.e. the rest of your life.
Well, at least it's not Rails!
Sheesh, did you work that into your pitch? I understand that you're feeling hot right now, but leave your unfounded technology biases out of it.
Sheesh, did you work that into your pitch? I understand that you're feeling hot right now, but leave your unfounded technology biases out of it.
You're right. I should have said "a todo app" or something similar - Rails was what came to mind first because of 37 Signals et al who make a lot of that kind of stuff.
Aside from that, I'm a huge fan of abstracting commonly made and agreed upon technical decisions further down the stack, making higher level development much simpler and less technically challenging - which is from my understanding what RoR was/is largely about. That's not to say that RoR as a framework isn't in and of itself a technical achievement though.
Aside from that, I'm a huge fan of abstracting commonly made and agreed upon technical decisions further down the stack, making higher level development much simpler and less technically challenging - which is from my understanding what RoR was/is largely about. That's not to say that RoR as a framework isn't in and of itself a technical achievement though.
[deleted]
i don't mind rejection. in fact, i kinda thrive off of it.
when YC has told us no in the past --> just sparked the fire that much more.
my personal motto: doubt me...please do ;)
when YC has told us no in the past --> just sparked the fire that much more.
my personal motto: doubt me...please do ;)
last line made me smile
a decent chunk of the energy for writing delicious was in response to getting rejected by google years ago...
It is also nice that Techstars rejection notice says: We hope that you are not deterred and we wish you the best of luck with your company
And on the link of general explanation "Why Not Us?" (http://www.techstars.org/whynotus/ ), they go even further: If you’ve applied and received notification of non-selection, we sincerely hope that you will go on to do great things. It will not surprise us one bit. Good luck!
It is really nice how people can reframe rejection into non-selection, and non-rejection into making great things.
Thanks all for the inspiring examples.
And on the link of general explanation "Why Not Us?" (http://www.techstars.org/whynotus/ ), they go even further: If you’ve applied and received notification of non-selection, we sincerely hope that you will go on to do great things. It will not surprise us one bit. Good luck!
It is really nice how people can reframe rejection into non-selection, and non-rejection into making great things.
Thanks all for the inspiring examples.
[deleted]
So, is your start up in stealth? Or are you just trying not to brag? Why the anonymity?
That would muddy the core message of 'buck up and keep at it' and turn it into a "take that" at YC, which does not seem to be intended. Being anonymous makes sense here, I think. (I actually clicked through to see if it needed to be flagged because it could be a "take that" and it's not.)
Bingo. YC is changing how the valley works, for the better, and should be recognized as doing so.
Additionally, running a (venture backed) company already puts enough scrutiny on me as a person and I'm in no hurry to increase that :)
Additionally, running a (venture backed) company already puts enough scrutiny on me as a person and I'm in no hurry to increase that :)
Good to know.
Again, well done on your recent success. Now the real work (and fun) begins :-)
Again, well done on your recent success. Now the real work (and fun) begins :-)
This is a fantastic story. Congratulations, let us in on the loop when you're ready to share!
Congratulations. :-)
Cheers indeed!
P.S. http://www.youtube.com/watch?v=b76VWp-voIk
P.S. http://www.youtube.com/watch?v=b76VWp-voIk
i'd be interested in talking to you, can you e-mail me? it's on my profile
>(if you know who I am, please keep my identity a secret, thanks!)
Personally I wouldn't require this whatever possible, even in that case, but that is a different topic altogether so...
Personally I wouldn't require this whatever possible, even in that case, but that is a different topic altogether so...
[deleted]
A friend of mine got rejected from the current YC batch, but raised $1M from prominent investors less than a month after the YC interview.
I'd argue that raising money from YC (specifically) might be harder than raising money generally from angels/VCs.
There are still only a finite number of YC applications selected into every cohort (and my guess is, as the brand grows, the number of teams competing grows). But, the number of potential angels and VCs for a deal is not as constrained.
Summary: Getting into YC is not the same as raising money from angels/VCs. I wouldn't equate the two.
Besides, it's not just about the money.
There are still only a finite number of YC applications selected into every cohort (and my guess is, as the brand grows, the number of teams competing grows). But, the number of potential angels and VCs for a deal is not as constrained.
Summary: Getting into YC is not the same as raising money from angels/VCs. I wouldn't equate the two.
Besides, it's not just about the money.
Same founders? Same project? Its important - this implies YC missed a golden opportunity - did they?
Further, was it typical of YC's space - web app, demo'able in weeks, two to 5 founders? If not, then its apples-oranges. Yes, you have to find your investor; YC may not be that investor.
Further, was it typical of YC's space - web app, demo'able in weeks, two to 5 founders? If not, then its apples-oranges. Yes, you have to find your investor; YC may not be that investor.
[deleted]
Congratulations!
If everyone is unanimously excited about your company and agrees with your vision, then there is definitely something wrong there!
just so we're all clear... the goal is more than raising money... right?
A friend and I applied for YC Summer '09 for a search related company (actually what Greplin is doing now). We made it to interviews but didn't make the final cut.
I went on to do other things and about a year later ended up back in start-up land with a different co-founder and a different idea. We just closed a multi-million dollar deal on fantastic terms yesterday from one of the best VCs in the valley.
So the moral of the story is this: rejection doesn't matter. To quote Randy Pausch: "The brick walls are not there to keep us out, they are there to give us a chance to show us how badly we want something." Raising funding is only the beginning of this journey but if you didn't make it into YC or face a similar situation somewhere else, exceptions to the rule do exist (like us) and there's really no reason YOU could not be another.
Cheers!
(if you know who I am, please keep my identity a secret, thanks!)