I read about YCombination’s latest announcement with mixed feelings. Initially, I was excited: “Well, I don’t have an idea!… I can apply to YC!” I was also highly skeptical – could a YC team without an idea be as successful as the others?
First, I think this change in requirements will significantly increase the noise to signal ratio, as it lowers the effort threshold to apply and consequently increases the application volume. Paul tweeted two days before the deadline that just under 14% of applications so far have been “no-idea” ones. With an overall acceptance rate hovering around 3%, this makes the job of Paul Graham, the partners at YC, and the network of YC alumni much more difficult in spotting a potential success. Paul has alluded that YC created and uses a list of top 10 factors predicting the probability of success – factors that are likely less applicable to no-idea teams.
What’s more significant, however, is the fact that Paul seems to be betting on other fundamentals that make startups successful: a strong team, the right network, and a lot of serendipitous help along the way. While all these ingredients are crucial to success, this nevertheless brings me back to a question that was asked at this year’s Columbia DevFest: “What’s the value of an idea?” Fred Wilson spoke to how successful entrepreneurs have often been contemplating the same idea over several years – allowing both a deeper understanding of customer behavior, pain points, and the requirements of a successful product. I would think that a team who has only recently committed to an idea, or handed one from a mentor, would have a much hard time achieving product-market fit.
Part of the difficulty may also arise from this diversity within the YC class. Only time will tell how many no-idea teams will ultimately be accepted, and as someone who’s done infinite amounts of team-building exercises, I’m curious as to how this change will affect the batch as a whole. Will no-idea teams feel insecure about their progress, or will idea teams adopt a looser commitment to their own ideas? A recent TechCrunch article emphasizes the important of the YC network to budding entrepreneurs – how will the addition of no-idea teams affect and benefit from these network effects?
Like many entrepreneurs, I also believe that there are many more problems to solve in this world than there are people to tackle them. At the macro level, this new initiative at YC seems to strive to bridge that disconnect between capable and passionate entrepreneurs and the host of pain points out there.