[HN Gopher] The YC Summer 2022 Batch
       ___________________________________________________________________
        
       The YC Summer 2022 Batch
        
       Author : todsacerdoti
       Score  : 79 points
       Date   : 2022-09-07 15:01 UTC (8 hours ago)
        
 (HTM) web link (www.ycombinator.com)
 (TXT) w3m dump (www.ycombinator.com)
        
       | simonebrunozzi wrote:
       | > For the first time since the Winter 2020 batch, the Summer 2022
       | batch was in person.
       | 
       | Nice.
       | 
       | > For the Summer 2022 batch, we received 19,000 applications from
       | founders around the world and funded 240.
       | 
       | Acceptance rate of 1.26%. For context, Harvard has a 3.19% [0]
       | 
       | > Demo day
       | 
       | is on September 7th and 8th. [1]
       | 
       | > United States: 140 startups, India: 19 startups, United
       | Kingdom: 11 startups, Israel: 8 startups
       | 
       | Interesting how the country breakup does not represent country
       | GDPs at all. I would expect more from Germany or Japan if it were
       | the case. But it shouldn't surprise people who are familiar with
       | YC and tech startups in general.
       | 
       | Besides Michael's post, which provides some details, I think it
       | would be interesting to hear from YC their view on the upcoming
       | months/years of high uncertainty in geopolitical and economical
       | terms, and how is this going to affect companies that apply for
       | YC, and want to graduate and go build great companies.
       | 
       | [0]: https://www.thecrimson.com/article/2022/4/1/admissions-
       | class...
       | 
       | [1]: https://www.ycombinator.com/demoday/faq/
        
         | epolanski wrote:
         | All I see is that the representation comes from countries where
         | english is spoken by the majority of adults, not the case for
         | germany, definitely not japan.
        
         | herval wrote:
         | I know a couple people from Germany doing startups - a couple
         | of them told me they don't bother w/ programs like this because
         | they can get a grant from the government, w/o giving out any
         | equity. Or just bootstrap, since their costs are lower, free
         | healthcare, etc.
         | 
         | They tend look for later stage funding (which is when you
         | realize that the power of YC is actually the credentials. Been
         | there!)
        
           | Nanana909 wrote:
           | The US also provides such a program:
           | https://seedfund.nsf.gov/
           | 
           | > Or just bootstrap, since their costs are lower, free
           | healthcare, etc.
           | 
           | Germany does not have free healthcare. From the employer
           | side, the employer is responsible for paying 7.5% of
           | employees income. Among numerous other taxes you'll need to
           | pay for each employee you bring on.
           | 
           | I think a lot of it is probably just the language barrier for
           | YC specifically. Not that German founders don't speak
           | English, but it's a whole different ball game trying to fund
           | a startup and hire talent in a country where prospective
           | industry contacts and even employees will need to speak
           | German in order to really feel at home. Not to mention a
           | different regulatory environment. That's not to say there
           | aren't accelerators focusing on Germany, because there are.
           | But building such a network when YC is based in the US isn't
           | an overnight thing.
           | 
           | Whereas in the US/UK it's really trivial to find support,
           | contacts, and devs from all over the world who are willing to
           | relocate just by nature of the fact that the local native
           | language is one they already know.
        
             | solarmist wrote:
             | I don't know anyone that's not from academia that's
             | successfully applied and gotten a seed fund grant as a
             | startup (1-3 people trying to get their first funding).
             | 
             | And articles I've read say a minimum of 80 hours of effort
             | for the application.
             | 
             | I've looked at it and it seems very bureaucratic. I believe
             | there is an entire cottage industry around writing
             | applications.
        
         | lnsru wrote:
         | Absolutely no hustling culture in Germany. Getting job at
         | Siemens or BMW or VW group is equal to the great exit for one
         | billion $. And staying there for few decades. Personally I like
         | it safe too.
         | 
         | And the digital culture in general. Fax is still a king, no
         | fertile ground for SaaS. Hardware ideas are cool, but too risky
         | compared to any software venture.
        
       | spaceman_2020 wrote:
       | > 7% had more than $50k of monthly revenue when accepted
       | 
       | Interesting. What's the motivation for applying to YC when you're
       | already on track to make 600k annually? I know bootstrapped
       | startups with 20k in revenue and they often have VCs knocking on
       | their doors
        
         | paxys wrote:
         | YC is a startup accelerator. If you are on track to make 600K
         | but want 6M instead then there's a lot of value in the program.
        
           | TigeriusKirk wrote:
           | It would be interesting to track this 7% and see how many of
           | them benefit from YC in tangible ways.
        
         | threeseed wrote:
         | Apparently the increase in valuation from investors post-YC
         | means that the program pays for itself in terms of dilution.
        
         | yashap wrote:
         | YC is a big-time brand, being a YC company is a powerful stamp
         | of approval for acquiring customers, hiring and raising further
         | investment. Go YC first, then get more interest/better terms
         | from VCs, hire more easily, sell more easily.
        
         | mdorazio wrote:
         | Exposure + validation. It's a desirable credential + guaranteed
         | press and intros to VCs if you want funding. YC is basically
         | like going to an Ivy League school for startups at this point.
        
         | trollied wrote:
         | The ecosystem. Being able to interact with other founders, the
         | exposure you get, advice & help etc. It's not about the money.
        
       | Existenceblinks wrote:
       | > 39% in B2B/Enterprise SaaS
       | 
       | Business newbie here. Is B2B a broad type of shovels business
       | (gold rush)? What ratio of B2C/B2B is going to sustain the
       | economy? (not sure what term of unit to measure here). And how
       | about if B2B2B is a lot more than B2B2C?
        
         | O__________O wrote:
         | One of the biggest potential boosts to being a YC founder is
         | launching a B2B startup to prior successful YC companies -
         | since even landing a few would make a significant impact both
         | in terms of revenue and easy of future sales.
         | 
         | Putting aside YC, generally speak B2B businesses have a higher
         | survival rate than B2C -- which is saying a lot given that
         | sales cycles in B2B tend to be much, much longer.
         | 
         | All that said, in my experience, founders with less experience
         | tend to focus on B2C because by default most people have
         | experience buying consumer products & services, much fewer have
         | significant experience buying business services & products.
         | People tend to focus on what they know.
         | 
         | As for the B2X2Z keep it simple, find a business you're
         | familiar with, model the business, then model another, etc --
         | the practice in modeling existing business will help you
         | actually understand how to model a business. I would start with
         | something like the Business Model Canvas, though no model is
         | prefect:
         | 
         | https://en.wikipedia.org/wiki/Business_Model_Canvas
         | 
         | Googling "business model canvas examples" or "business model
         | canvas [a-z]" where a-z is the first letter of a specific
         | existing business or industry will pull up related examples.
        
         | nfw2 wrote:
         | Not affiliated with YC, but here are some reasons about why B2B
         | would be more appealing to YC.
         | 
         | YC offers a big competitive advantage to B2B (especially tech
         | B2B) through its network. YC offers a large network of
         | potential customers and early adopters for new or growing B2B
         | businesses. Access to the YC network makes it easier to get a
         | B2B off the ground. Many B2B applicants to YC already have some
         | traction and use YC to help take off. This kind of applicant is
         | obviously attractive to YC because it is low-risk.
         | 
         | Also, with B2B companies, it is much easier to avoid the
         | Achilles Heel of B2C, which is that the cost to acquire a user
         | ends up being higher than the revenue that user generates. Even
         | if there is decent product-market fit, consumers generally have
         | tight budgets. With B2B, one sale can generate thousands in
         | ARR, which makes hiring a sales team to close those deals
         | scalable.
        
         | threeseed wrote:
         | The economic model of YC and VC in general demand you be a
         | billion dollar startup.
         | 
         | It's significantly easier to do that in B2B versus B2C when
         | your target customers have deeper wallets.
        
         | curo wrote:
         | There are a lot of consumer products without scalable tech
         | (e.g., grocery brands, entertainment, fashion, media, etc).
         | Those consumer companies are B2B customers.
         | 
         | So a high B2B/B2C ratio on YC (which funds scalable tech) is
         | probably not indicative of an unsustainable economy.
        
           | Existenceblinks wrote:
           | My question is misleading since I quote the YC's %. I mean,
           | generally speaking, not particular to YC. So I think as long
           | as those consumers companies' profit can absorb/buy all of
           | B2B...2C service chain all the way down, it will keep going?
        
       | paxys wrote:
       | > 43% of the batch were accepted with only an idea
       | 
       | I would love to hear more details about this lot. A billion+
       | people on the planet (including most of this forum I bet) have
       | "killer" startup ideas and swear they can successfully execute on
       | them with some money. How exactly does YC judge their merit and
       | fund them without as much as a working prototype? Do you look at
       | past history of successful launches? Education/work pedigree?
       | Personality? It's pretty wild that such founders make up almost
       | half of the batch.
        
         | whatshisface wrote:
         | YC can afford to take risks and fund people on first
         | impressions, that's their whole thing if you think about it.
        
           | brudgers wrote:
           | My take is that YC can't afford not to operate that way.
           | 
           | My impression is the Decision Matrix looks like.
           | High       Low              Execution  Execution
           | Good   Maybe       No       Idea            Bad    Maybe
           | No       Idea
           | 
           | The idea does not matter much because it is easy to use an
           | external source for ideas when a team has a bad idea or no
           | idea.
           | 
           | On the other hand, there's no external way to fix low
           | execution.
           | 
           | The other thing is that it is often hard to tell good new
           | ideas from bad new ideas in the context of startups. So idea
           | is often a weak signal.
           | 
           | As the GP argued, everyone has startup ideas.
        
         | dzink wrote:
         | How many of the idea-only founders were female?
        
           | crhulls wrote:
           | I may be reading between the lines on something you don't
           | intend, but it seems like this data, in isolation of control
           | variables, could just end up with an incorrect clickbait
           | conclusion that YC is sexist.
           | 
           | For example, someone already made the point that many of
           | these founders who could raise on just an idea were likely on
           | their second go around or prior FANG employees. Most founders
           | have historically been male (not saying this is good - just
           | matter of fact) and only 17% of engineers at Google are
           | female (and I think it goes without saying that YC has a bias
           | towards engineers).
           | 
           | So if YC has an explicit positive bias towards second time
           | founders and FAANG employees, you could easily see what
           | appears to be anti-female bias, but in reality is just
           | positive indexing towards other attributes that historically
           | skewed male. This may or may not be the case, and there
           | probably are instances where there is implicit bias towards
           | non-positive male-associated traits (macho attitude?
           | unwarranted overconfidence?) but this data in isolation
           | doesn't tell us much.
           | 
           | I'm not saying that diversity is bad, or that we shouldn't be
           | looking to increase female representation in the founder
           | community, but we should be careful with understanding cause
           | vs correlation and maintain intellectual honesty when looking
           | at statistics.
        
           | DelaneyM wrote:
           | This is a stat I'd love to see.
        
           | YetAnotherNick wrote:
           | Not sure what correlation do you expect? Do you think it
           | would higher or lower than founders with some progress?
        
             | [deleted]
        
           | int0x2e wrote:
           | Just curious - why do assume a correlation (one way or the
           | other) between these two metrics?
        
             | dsr_ wrote:
             | They didn't assume anything. They asked. First you get the
             | data, then you can think about correlation.
        
             | Judgmentality wrote:
             | Because humans are imperfect and prone to bias.
        
         | mjirv wrote:
         | My guess is that about 50% are repeat founders and a majority
         | of the rest are FAANG, Ivy League, or Stanford alums.
         | 
         | (This is a genuine guess, not a knock on YC)
        
         | peyton wrote:
         | It's probably pretty easy to tell with experience.
        
         | presidentender wrote:
         | My cofounder and I raised (not from YC) on a deck.
         | 
         | The network was what mattered for this, though. A former
         | colleague (an exec at my previous job) is also a venture
         | partner at a credible firm, who introduced me to his network of
         | VCs and to a number of potential cofounders, including the
         | person with whom I am now building this company. And my
         | cofounder's own network is vast, which led to a ton of investor
         | interest and favorable terms.
         | 
         | Again: he made a slide deck and used his network and we started
         | building once we had funding. It doesn't surprise me that YC
         | companies do likewise.
        
           | beebmam wrote:
           | It's on a deck AND the individuals who present. If you sent
           | someone a slide deck and nothing else, virtually no one is
           | going to raise funding on just that.
        
       | threeseed wrote:
       | Interesting no mention of the percentage of solo founders.
       | 
       | From reports they heavily weigh against them.
        
         | nfw2 wrote:
         | Jared Friedman has recently said each batch generally has over
         | 10% solo founders. So, it would be considered a meaningful
         | concern, but certainly not a deal-breaker, especially if the
         | founder is technical.
         | 
         | https://www.ycombinator.com/library/7P-does-yc-fund-solo-fou...
        
       | andrewstuart wrote:
       | I wish HN had a "Launch" link at the top in which YC companies
       | (and maybe other companies) could do launch posts.
       | 
       | @dang ?
        
         | detaro wrote:
         | YC companies can do launch posts coordinated through dang AFAIK
         | (which both ensures that there's not to many and that someone
         | tells them if their pitch style isn't going to work for the
         | audience)
        
       | galkk wrote:
       | Numbers in demographic breakdown don't add up to 100%?
        
         | O__________O wrote:
         | In case they are update, currently listed as:
         | 
         | 13% Asian, 3% Black, 6% Hispanic or Latino, 5% Middle Eastern
         | or North African, 8% Multiracial, 15% South Asian, 29% White
         | 
         | -- which adds up to be 79% -- not 100%.
        
           | Existenceblinks wrote:
           | Wonder if there is a "other" field in application for e.g.
           | asian-american?
        
             | [deleted]
        
           | dmicah wrote:
           | Not sure if this is what happened here but demographic /
           | ethnicity questions often have a 'prefer not to say' option.
        
       | jypepin wrote:
       | > 19,000 applications from founders around the world and funded
       | 240.
       | 
       | Damn that's a lot of applications to review. Is there any data in
       | terms of quality of applications? Is there a big part of
       | spams/very low quality applications or is everything pretty
       | serious?
        
       | elektor wrote:
       | "2% in Climate, Energy, or Sustainability"
       | 
       | I know YC is not a governmental agency and their main goal is
       | profit, but given all that's going on in the world, would've
       | loved to see a substantially higher number here.
        
         | paxys wrote:
         | Climate tech doesn't fit the YC model (and tech VC model in
         | general) at all. Projects are too unpredictable and hard to
         | judge. They need many orders of magnitude greater investment to
         | get started than a seed fund can provide. And tech VCs can't
         | really contribute any business expertise in the area.
         | 
         | It's a lot easier to fund a hundred B2B SaaS apps and wait for
         | a handful of them to return 1000x in 5 years.
        
           | newaccount2021 wrote:
        
           | elektor wrote:
           | Well said. I imagine a group like Lower Carbon Capital
           | (https://lowercarboncapital.com/) would be better suited to
           | provide expertise.
        
           | rogerkirkness wrote:
           | The difference is basically a spectrum from pure engineering
           | to pure science. At first, pure science is really volatile,
           | where as pure engineering can be a simple matter of talent
           | and funding. Execution risk is much lower on the engineering
           | side. There are many climate related issues that are bound by
           | engineering.
        
         | CedarMills wrote:
         | A lot of climate tech is bs unfortunately.
        
           | phlipski wrote:
           | A lot of tech is bs unfortunately. Fixed it for you!
        
             | bko wrote:
             | A lot of tech is simple, basically a CRUD app. For
             | instance, there is probably a billion dollar app that will
             | come out in next 10 years that makes performance reviews
             | slightly better (e.g. 15five) or maybe a slightly better
             | chat application (Slack). None of these products relied on
             | technical leaps, just execution and positioning.
        
           | idlewords wrote:
           | That should make it a natural fit for YC, and only deepens
           | the mystery.
        
       | mdorazio wrote:
       | > 15% of the companies have a woman founder and 9% of the
       | founders are women
       | 
       | The trend continues. I still want to see an objective analysis
       | for why so few female founders make it through the funnel. I
       | haven't found any good stats to see if the overall % of startup
       | founders (regardless of YC participation) is abysmal, if it's the
       | software focus that acts as a filter, if it's the VC focus, or
       | something else entirely.
        
         | danielmarkbruce wrote:
         | It might be the wrong question. The right one might be "why are
         | so many males making irrational decisions?"
         | 
         | Doing a startup is likely irrational on the whole. The cause of
         | such irrational behavior is debatable/unknown.
         | 
         | Giving up your entire life in a quest to make CEO is likely
         | irrational overall.
         | 
         | Giving up your life to be a terrorist is almost certainly
         | irrational.
         | 
         | There seems to be several irrational things males do more
         | frequently.... Sort of extremist behaviors. Females might just
         | engage in less irrational behavior overall.
        
         | epolanski wrote:
         | There's less female entrepeneurs and business owners in
         | general. Cultural and biological factors are important there.
        
         | rafale wrote:
         | A guy from Google explained this a few years ago. He got
         | fired/cancelled.
        
         | sokoloff wrote:
         | What's the makeup of the applicant pool?
         | 
         | If the top of the YC funnel is 6% female, we would be asking a
         | different question than if it's 18% female.
        
           | dzink wrote:
           | I second this question as well.
        
           | mdorazio wrote:
           | I don't think they post that stat every year. In 2015 it was
           | about 12%: https://www.ycombinator.com/blog/yc-demographics
           | 
           | But that doesn't really help answer my bigger question, which
           | is why is _that_ number so low?
           | 
           | I did find one stat showing about 20% of US businesses with
           | employees are female-owned, which is itself troubling and
           | leads to more "why?".
        
             | siphor wrote:
             | Looks like about 20% of comp sci grads in the US are women.
             | Seems like the very simple "why". As for that why... idk
             | probably need to change how kids grow up en-masse. My
             | guess, which probably isn't worth much, is it'll happen
             | slowly, but will probably take a generation or two.
             | 
             | There's probably also some genetically encoded differences
             | on risk-averseness (another guess). FAANG is a great gig
             | and is much more predictable and stable.
        
               | nfw2 wrote:
               | Another potential difference could be prioritization of
               | work-life balance, which would generally be better at a
               | FAANG company than a startup.
        
               | dsr_ wrote:
               | Cultural factors consistently swamp genetic explanations
               | for things which aren't obvious morphology and biology.
        
               | YetAnotherNick wrote:
               | Consistently is a big word without any proof. After all
               | scientists have found many of gender norm in nearest
               | animals and completely isolated human tribes.
        
         | [deleted]
        
       | xwdv wrote:
       | 30% of the batch moving to the Bay Area is a pretty low rate.
       | 
       | It's time to start considering a move to a better location. The
       | Bay Area is no longer in style, and San Francisco is a dump, and
       | somehow way too expensive.
        
         | kansface wrote:
         | Handshake deals require two hands. You need the proximity to
         | the VCs if nothing else.
        
           | xwdv wrote:
           | 70% of the batch didn't think so.
        
         | int0x2e wrote:
         | I would argue moving would require moving the VC industry as
         | well, but if anyone can do it, YC would be the one to get it
         | done. Having said that, it's going to be a real challenge -
         | SV's prominence is quite massive and long-held. Founders would
         | need this new location to offer similar benefits in terms of
         | talent, investor access, etc. to make it worth their while.
        
         | blhack wrote:
         | Where do you suggest?
        
           | xwdv wrote:
           | Come to Austin.
        
             | threeseed wrote:
             | Female participation in Engineering/IT is already
             | unacceptably low.
             | 
             | Texas making abortion illegal would discourage women from
             | wanting to work there exacerbating the problem.
        
               | xwdv wrote:
               | So it should have little to no impact.
        
               | jacobriis wrote:
               | How often are persons who self-identify as having the
               | capacity for pregnancy having abortions that a two hour
               | flight to Denver won't do?
        
               | bruceb wrote:
               | It is hassle for women, more so for poor women who might
               | not have money laying around for flights and hotels. It
               | is also the signal it sends about who thinks you should
               | have no choice. Republicans were probably on their way to
               | taking the house before Roe was struck down. Its the one
               | issue for some that overrides other considerations.
        
               | csa wrote:
               | > How often are persons who self-identify as having the
               | capacity for pregnancy having abortions that a two hour
               | flight to Denver won't do?
               | 
               | Iirc, anyone who knowingly assists this person in getting
               | to Denver for the abortion is exposing themselves to
               | criminal liability via the "community" whistleblower
               | laws.
               | 
               | https://news.bloomberglaw.com/daily-labor-report/workers-
               | abo...
               | 
               | "Texas is front and center in the abortion rights battle,
               | drawing attention last year for a new whistleblower-type
               | law (SB 8) that lets an individual sue anyone who "aids
               | or abets" an abortion and receive a $10,000 reward."
        
               | jacobriis wrote:
               | Why would you tell your Uber driver you're traveling to
               | have an abortion? Probably TMI even without SB 8.
        
               | dang wrote:
               | Please don't post flamebait to HN.
               | 
               | https://news.ycombinator.com/newsguidelines.html
        
         | threeseed wrote:
         | 1) The standard deal gives much more money to startups and so
         | based on what I've see on Crunchbase many startups are simply
         | not raising seed rounds post-YC. So that negates the need to
         | move to a VC hotspot like SF at least in the beginning.
         | 
         | 2) COVID has demonstrated that you can make remote work and
         | that a sizeable percentage of employees (especially in IT
         | sector) will only accept a remote role. Many startups simply
         | won't have offices or headquarters at all.
         | 
         | 3) As was pointed out by Jason Calcanis last week a lot of the
         | people who publicly told the world they were leaving SF for
         | Texas, Florida etc have been quietly moving back. Despite all
         | of SF's many problems there isn't anywhere else that can
         | replicate the critical mass of talent and network that it
         | provides.
        
           | tmpz22 wrote:
           | To spell it out further:
           | 
           | The SFBA is a great place to live _if you have money_. And as
           | long as business continues to revolve around _people who have
           | money_ , the Bay Area will remain a perfectly valid place to
           | do business.
           | 
           | ---
           | 
           | I don't think its even about the "tech talent" for most
           | start-up projects, as you can certainly source this remotely
           | to an adequate level to meet the early needs of a startup.
           | 
           | As long as the whales are here, it will make sense to have a
           | fishing boat.
        
           | phlipski wrote:
           | Reminds me of a quote I saw earlier this year in Bloomberg
           | about wall street companies moving to Florida: "The main
           | problem with moving to Florida is that you have to live in
           | Florida."
           | 
           | https://www.bloomberg.com/news/articles/2021-03-10/wall-
           | stre...
        
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