YC funds founders, not slides: it backs people because most of the startups it funds will change their idea significantly, and a deck only exists to make the idea clearer. The firm's core teaching is 'make something people want' — ideally an organic idea that grows out of the founders' own experience and that a small number of users want a large amount. Determination is the single most important founder quality, and growth (a good rate is 5-7% a week during YC) is the compass for almost every decision.
A real problem the founders themselves have or deeply understand — an 'organic' problem few others realize is worth solving, stated clearly in the simplest possible terms.
“The way to get startup ideas is not to try to think of startup ideas. It's to look for problems, preferably problems you have yourself.” — How to Get Startup Ideas
“At YC we call ideas that grow naturally out of the founders' own experiences 'organic' startup ideas. The most successful startups almost all begin this way.” — Paul Graham
“Whatever you have to say, give it to us right in the first sentence, in the simplest possible terms.” — Paul Graham
“We want to see that you're aware of the obstacles, and have at least a theory about how to overcome them.” — Paul Graham
Something people actually want, ideally something the founders themselves want and can build, that few others realize is worth doing — satisfying all the needs of a narrow set of users rather than some needs of everyone.
“they're something the founders themselves want, that they themselves can build, and that few others realize are worth doing.” — How to Get Startup Ideas
“Initially you have to choose between satisfying all the needs of a subset of potential users, or satisfying a subset of the needs of all potential users. Take the first.” — Paul Graham
“The reason to launch fast is not so much that it's critical to get your product to market early, but that you haven't really started working on it till you've launched.” — Paul Graham
“Live in the future, then build what's missing.” — Paul Graham
A market that may look small today but is positioned to grow — a narrow, deep beachhead of people doing something many more people will do in the future. YC prefers 'small but growing' over a large headline TAM that nobody wants intensely.
“if the beachhead consists of people doing something lots more people will be doing in the future, then it's probably big enough no matter how small it is.” — How to Get Startup Ideas
“Nearly all good startup ideas are of the second type. Microsoft was a well when they made Altair Basic. There were only a couple thousand Altair owners, but without this software they were programming in machine language.” — Paul Graham
“you can either build something a large number of people want a small amount, or something a small number of people want a large amount. Choose the latter.” — Paul Graham
Real, explosive usage — customers buying or usage growing as fast as you can supply it. A good growth rate during YC is 5-7% a week; traction is not required to apply (~40% of funded companies are just an idea), but if you have it, it must be genuine.
“A good growth rate during YC is 5-7% a week. If you can hit 10% a week you're doing exceptionally well.” — Startup = Growth
“use growth like a compass to make almost every decision you face.” — Paul Graham
“You can't pretend your way out of product/market fit. It does not work.” — Michael Seibel
“The reason to launch fast is not so much that it's critical to get your product to market early, but that you haven't really started working on it till you've launched.” — Paul Graham
Determined, flexible founders with a strong relationship between them and at least one person who can build the product. YC cares more about the founders than the idea, and weighs the magnitude of what each founder has achieved.
“This has turned out to be the most important quality in startup founders.” — What We Look for in Founders
“I care more about the founders than the idea, because most of the startups we fund will change their idea significantly.” — Paul Graham
“Please tell us in one or two sentences about something impressive that each founder has built or achieved.” — Paul Graham
“Startups do to the relationship between the founders what a dog does to a sock: if it can be pulled apart, it will be.” — Paul Graham
A path to growth that compounds and a clear-eyed view of unit economics and runway — founders should know whether they are 'default alive' (reaching profitability on current trajectory and cash) or 'default dead.'
“Assuming their expenses remain constant and their revenue growth is what it has been over the last several months, do they make it to profitability on the money they have left?” — Default Alive or Default Dead?
“Default alive or default dead?” — Paul Graham
“A startup is a company designed to grow fast.” — Paul Graham
Evidence of superior execution and genuine user understanding rather than obsession over competitors — YC views competitors as rarely fatal and wants founders to win by building what users actually lack.
“It's exceptionally rare for startups to be killed by competitors — so rare that you can almost discount the possibility.” — How to Get Startup Ideas
“The hard part is seeing something new that users lack... the odds of doing that improve with better user understanding.” — Paul Graham
“It is better to disclose all the flaws in your idea than to try to conceal them.” — Paul Graham
A reason the opportunity is ripe now — living in the future and building what's missing, or a technology shift (today, AI) that has turned a hard problem into a buildable one. YC backs contrarian ideas that look wrong but are right.
“Live in the future, then build what's missing.” — How to Get Startup Ideas
“AI has stopped being a feature and started being the foundation.” — Requests for Startups
“To succeed in a domain that violates your intuitions, you need to be able to turn them off the way a pilot does when flying through clouds.” — Paul Graham
A focused fundraising effort with clear momentum: raise in parallel rather than serially, secure a first commitment, and treat valuation as secondary to building something people want. The ask should be the climax of the pitch, not an afterthought.
“You should always talk to investors in parallel rather than serially.” — How to Raise Money
“Getting the first substantial offer can be half the total difficulty of fundraising.” — Paul Graham
“A startup should either be in fundraising mode or not.” — Paul Graham
“The most important thing to understand about valuation is that it's not that important.” — Paul Graham
“This has turned out to be the most important quality in startup founders.”
“You can't pretend your way out of product/market fit. It does not work.”