September 2022

I recently advised Y Combinator applicants that the best advice for getting in was to explain what they've learned from users. This advice tests if they’re paying attention to users, understanding them, and recognizing the necessity of their product. Reflecting on what I've learned from YC's startups, the recurrence of similar problems across different startups stands out. Advising numerous startups reveals common issues, which is a key factor in YC's effectiveness.

Initially, we didn't realize the importance of individualized advice. The "batch that broke YC" in 2012 taught us this. We used to treat partners as a pool, but as the batch size grew, it became clear that each startup needed dedicated partners. We solved this by sharding batches into smaller groups.

Founders often misidentify their problems. They might focus on fundraising issues when the real problem is poor company performance. Sometimes, they don't realize their product isn't good enough, which affects user acquisition. Founders also struggle with prioritizing problems correctly. YC partners help them identify and address the most critical issues.

Another surprise was how often founders don't listen to advice. This is partly due to the counterintuitive nature of startups, making advice seem wrong until experience proves otherwise. YC partners, often former founders, understand this counterintuitiveness.

YC's focus is on action with measurable, near-term results. Founders need to focus on the most important problems, and YC helps them do this, enhancing their speed and effectiveness. YC also provides valuable colleagues, creating a cluster of great startup founders who inspire and help each other.

YC's structure is designed to be what we wanted when starting our own startup: seed funding and great colleagues. This environment fosters generosity and collaboration among founders, creating an intense and supportive community.

The original article: http://paulgraham.com/users.html