YC is CRISPR for Startups

Last week, we launched our Summer 2021 batch here at Y Combinator, the 33rd batch since our founding in 2005. We are now funding hundreds of companies each batch, and I’ve been reflecting on how we work with those companies during the batch and afterward, as they build their business.

Over the years, I’ve found that there is a common misapprehension about what we do at Y Combinator. People often believe that YC’s raison d’etre is Demo Day and fundraising — and that founders’ singular goal in applying to YC and completing our program is to increase their probability of executing a successful fundraise.

It is true that companies that complete YC’s core program have an easier time raising money from angel investors and venture capitalists. It is also certainly correct that raising capital is extremely important to early-stage startup companies as they finance their product development and the growth they plan and hope for.

But this begs an important question: why is it that YC companies have a better chance of fundraising success? Is it because YC is an effective filter: choosing only the best founders and companies? That is certainly one reason. However, there is more to this answer and it is fundamental to what we do. By joining YC, by going through our program, working with our group partners, and by becoming part of the YC community, each startup undergoes a subtle transformation into a company more likely to succeed. This is the real secret to YC’s success.

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