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Speaker 1

00:00

So I'm really excited to introduce you to all the, not all, but many of the incredible women that I get to work with every day. These are the partners of Y Combinator. And so, yeah. So I would love for, we're gonna be answering some of the questions that you sent us, and so I'd love for each of you to introduce yourselves, and then we'll just jump in.

Speaker 1

00:24

Kirsten.

Speaker 2

00:25

Okay, shall I start? Okay, hi again, everyone. I'm Kirsten Nathoo, I'm the CFO here at Y Combinator, and I've been involved with YCNOW since 2010, so I've seen it go through a lot of changes.

Speaker 3

00:39

I'm Carolyn Levy, I'm Partner and General Counsel at Y Combinator and I've been here for about 5 years.

Speaker 4

00:46

Hi everyone, I'm Anu Hariharan, I'm a partner at Y Combinator's Continuity Fund. I joined YC last year. The Continuity Fund is fairly new.

Speaker 4

00:56

We invest primarily in growth stage companies and help with company building at scale.

Speaker 5

01:02

Hi, my name's Adora Chung. I'm a partner at YC, 1 of the group partners, meaning I work directly with the startups. I've been here for about a year now, a little over a year, and I went through YC myself in 2010, I guess when Kirstie started.

Speaker 6

01:17

Yeah. I'm Jessica Livingston, I'm a co-founder of YC.

Speaker 1

01:23

And I'm Kat, and I've been at YC for about 4 years now. And started out as the first director of outreach, so meant working with a lot of potential applicants, like you guys. All right, let's just dive into the questions.

Speaker 1

01:34

So how much industry experience do you typically recommend founders have?

Speaker 5

01:41

0.

Speaker 3

01:42

0. Yeah. Well, no, actually I think for biotech, it's pretty important that the founder have industry experience. But not true for other.

Speaker 6

01:53

Well also it's how do you interpret that question, because in my talk earlier I said that ideas grow organically out of founders lives and usually they're working in some given industry, and they're an expert in it, and they say, gosh, this aspect is totally broken, I know how to fix it. And so we love funding people with domain expertise, I guess.

Speaker 5

02:15

Yeah, usually these people have been in the industry for just a little bit, not too long, so that they are so entrenched in it that they don't know how to fix it or know how to build to fix it. But yeah.

Speaker 1

02:29

Which is long enough to kind of experience the problem and say like, this is insane, I have to fix it. Right. Yeah.

Speaker 1

02:35

And so yeah, I think at YC I've seen folks that have had 0 industry experience in something that they're launching and then some folks that have had years, many years. So I guess it really just depends. But there's no, I guess there's no simple answer to that question.

Speaker 6

02:48

There's no simple answer. I don't think Drew Houston had a whole lot of experience in storage when he got frustrated because he'd left his talk back and he was on the bus to New York.

Speaker 1

03:02

So here's a stats question. What percentage of applications have a female co-founder? Or what percentage of, I guess, the overall population are women?

Speaker 1

03:13

So I'll take this 1.

Speaker 6

03:14

I was gonna say. Yeah.

Speaker 1

03:17

I obsess over the stats. So right now we're seeing about 13% of the founders that apply to YC are women. And so I just wanna let that sink in because I want that to be closer to 50% of the population of people applying.

Speaker 1

03:33

Thank you. And then, so about 22, 23% of the companies have a female founder. And there are very, very few companies that apply that are female-only teams. And so I would love to see more of that as well.

Speaker 1

03:50

What is a myth about starting startups or about YC that you wish you could dispel?

Speaker 6

03:57

I cannot answer that question.

Speaker 4

04:04

I'll probably start with that and you all can fill in. I think, especially because I joined YC only a year ago and I remember after going through all the interview process and I'm super excited about having gotten the offer when I was talking to other people and what are some of the myths that I think now that I've spent a year I can say. So 1 is I think it's a myth that we don't invest in non-technical founders.

Speaker 4

04:28

We do. I think the other myth is that we don't invest in solo founders. I think we encourage having co-founders for various reasons, but there is no strict rule that says it's an absolute no. And the third thing, which actually really surprised me, because I had never thought that in my head, is that YC has no women.

Speaker 4

04:47

So, and I, when I went through the interview process, I actually met-

Speaker 6

04:50

Or doesn't have a women founder.

Speaker 4

04:52

Founder, yes. So I think that that's, you know, I never had that doubt, especially because I had met all of them through the interview experience, and now that I've worked at YC for almost a year, I can certainly say with conviction that women play a central role in every decision in YC.

Speaker 1

05:12

Thank you. I get frustrated because I feel like women often get written out of a lot of stories, right? I mean, this is a thing that we've seen time and time again.

Speaker 1

05:23

And I was just telling someone this morning about this. Back when I started at YC, all these reporters would write about YC and they would refer to Jessica as like Paul Graham's wife. And only described as Paul Graham's wife. In YC you know that Jessica is a founder of YC, right?

Speaker 1

05:40

And it's such bullshit. And it was like, and she is like half of the operating part of YC. And so it would just frustrate us internally. And then yesterday's story came out that referenced Jessica as co-founder.

Speaker 1

05:52

There was no mention of wife or anything, and I was like, progress! I was like, I was just so thrilled that you were given your due.

Speaker 6

06:00

There was some article that came out that said Paul Graham, Jessica Livingston's husband. I almost had a heart attack. I don't remember what it was, but I remember, oh, look at this!

Speaker 6

06:11

And she'd laugh. Can I say something on the whole myth thing, because there are too many for me to even address and some I get very emotional about? But when I hear things like people come up and say, oh, but you don't fund solo founders, like it breaks my heart. What I'd love for just people who would like to give us a chance is to say, okay, I've read a lot of these articles.

Speaker 6

06:36

I think this is the case. Let me make sure. Let me just ask if that's true with someone who went through YC and see what their experience was like. So that's my only request.

Speaker 6

06:46

If you do come across a myth that you think is true, remember there's always several sides to a story and not to believe everything you read on Twitter or in the press.

Speaker 3

06:55

You know, actually, I just wanna say 1 thing. Even after we fund solo female founders, they still don't believe it. I was having a dinner with 1 of our female founders from last winter and she said to me, why did you guys fund me?

Speaker 3

07:10

And I'm like, what a weird question. What do you mean, why did we

Speaker 1

07:12

fund you?

Speaker 3

07:12

She's like, well, I'm female, I don't have a co-founder. I was like, seriously? It was like 4 weeks into the program and she was still doubting.

Speaker 3

07:18

It was depressing a little bit. But

Speaker 1

07:21

there's a question that this actually nicely dovetails into is that you know YC has funded non-technical founders and sometimes even non-technical solo founders. What was it about those founders when they applied and interviewed at YC that impressed you and I guess convinced everyone?

Speaker 5

07:39

For me, it's they have a clear vision of what they want to build, and they have a clear roadmap of how to get there step by step. And they understand that today I need to, maybe I lack a technical co-founder, but I know how to hack my way into those next steps. Another good indication is if you've been a product manager or head of like a PM somewhere, and you've worked with a lot of engineers, and you've directed and orchestrated product building before, I think that's a really good historical reference to that you can build product without needing a technical co-founder.

Speaker 2

08:14

I think it depends on the kind of product as well. Not all products that get built need to have super technical founders. And as long as you have, like you say, the language to be able to understand what takes a long time, what doesn't, to be able to talk to engineers, to be able to set out the product, then that's what's needed.

Speaker 2

08:32

And not all founders have to be deeply, deeply technical.

Speaker 6

08:36

And I, lastly, I'll just wrap this up. There is no 1 type of founder we fund. We never say never about anything.

Speaker 6

08:43

There are just so many different things we do. So I wouldn't want anyone to think YC never funds blank because that's not true.

Speaker 1

08:52

Hey does YC fund and work with later stage companies? I will you want me to kick that over to you?

Speaker 4

08:59

Yeah sure so yes yes we do So the YC Continuity Fund that was launched 2 years ago. Our primary goal is to really help support the companies in the growth state. So we do invest in companies in the later stage.

Speaker 4

09:14

What we're really at that stage, what we're really looking for is, has the company sort of figured out its product market fit, and they're really raising money for scale. And many of the activities that we help in that stage is really with company building, right? Because the early stage program does a fantastic job of really helping you figure out how to get product market fit and, you know, really you're just starting in the initial phase of the company which is you know, 1 to 10 employees or 20, but when you get to 30 people and you're scaling now to 100 or 200 or even 500 people, the problems are different. Your job as a CEO changes.

Speaker 4

09:50

So we help along with a lot of elements in that phase.

Speaker 2

09:55

I think it's also coming back to the idea of myths that people make up their own myths about Y Combinator that bear no resemblance to anything, and so they convince themselves that I'm too early for Y Combinator, or I'm too late for Y Combinator, and again there's no too early and there's no too late. We fund companies at all stages, and So people make our decisions for us by not applying. Let us make that decision.

Speaker 1

10:24

Okay, next question is, what advice do you have for a mom who wants to start a company? Do you want some of the moms to take that? Be prepared

Speaker 3

10:32

to have another baby, because that's what startups are like. That's what I always think when I'm talking to founders. I think, God, this sounds like having another kid, because they take that much work.

Speaker 3

10:43

So that's the way I would think about it. It's like having more kids.

Speaker 6

10:48

I actually asked Diane Green this at our first female founders conference when she came to Spoke. I was backstage with her and I said, how did you do this? Because I at this point had My 2 children, 1 was just a baby, and I was struggling a little bit.

Speaker 6

11:03

It's a lot of work to juggle everything. And I said, how did you run VMware and have kids while you were doing all that? And she gave me some good advice, which was she really made an effort to outsource a lot of things that didn't have to do with specifically her children. So she had a gardener, she had someone who came in to clean her house and did all these things because she couldn't do everything, so outsource the stuff that can be done by someone else.

Speaker 6

11:31

You know I used Instacart all the time. I got anything that could be delivered I had delivered. Save me a drive to the grocery store, drive wherever. And so I always I always appreciated that advice because it seems reasonable but I hadn't really implemented it.

Speaker 4

11:47

Yeah I would say you know if you're really passionate about something do it. It doesn't matter the timing is never right. There is no perfect time to start something.

Speaker 4

11:58

You know, 3 years ago, I met Nicole Shariat-Farb. She started a company, and I actually met her because she was pitching her startup to us at the time. And I had just delivered a baby at that time, and I thought my life was crazy. And so I finished the pitch meeting, and I told her, Nicole, my kid is really sick.

Speaker 4

12:16

Is it okay if I get back to you in 2 days? And she understood. And she never mentioned anything. I later got to know that she had just delivered twins 2 days after my kid, and I was like, wow, what was I thinking?

Speaker 4

12:28

Right? So I just think that, you know, there are a lot of women who I have seen, quite a few, I mean it's not in mass numbers, but who at least in recent years have seen, it doesn't, there's no right time, and you cannot wait for the perfect time. So if you are really committed, and you know that is the thing you wanna work, go do it.

Speaker 5

12:48

There's actually a really good example backstage, the Proven founders. So we just accepted this batch, and when they interviewed us, I had no clue, but they were both pregnant. And so they're hobbling backstage, hustling and talking to people and trying to get users for their product, but they're pregnant.

Speaker 5

13:06

But they're doing it, so if you're passionate about it, you can.

Speaker 6

13:10

How far apart are their due dates?

Speaker 5

13:11

I think 1 month. 1 month?

Speaker 6

13:14

That will probably be hectic.

Speaker 5

13:17

1 thing. They said they're gonna share babysitters, they're gonna share everything, so we'll see.

Speaker 1

13:22

So next question is, if you're working on a side project, at what point would you feel comfortable going full-time on it? When should you bail out of your job or think about taking time off school?

Speaker 5

13:37

I think there's 2 pieces to that. 1 is you feel like it's, you're ready to go all in, obviously, and it's like getting some traction. That's a good sign.

Speaker 5

13:45

2 is, I mean, financial concerns. So if you have low personal burn, I mean this is why really young people start up probably more than maybe older folks. But if you're in a financially good place to take off for a year, that's probably a good place to start.

Speaker 6

14:01

And I'd say try to focus full time as soon as you can, if it's OK with you financially. Try to do it sooner than later. We always say, like, you've got to burn the boat before you can really make the kind of progress you can.

Speaker 6

14:16

But then again, I'm talking out of both sides of my mouth because a lot of times I say, don't quit your job if you're thinking of starting a startup, work on something on the side and see how it goes. But the point is once it starts getting a little traction, the sooner you can focus full time, the better obviously it is for that company.

Speaker 1

14:32

And I really liked what Morgan had said. She was, while she was working at Intuit, she'd started the first version of Blavity and then there was like that moment where she'd started to build an audience but also was so passionate it just like pulled her out. I thought that was pretty cool.

Speaker 5

14:49

It's also 1 of the reasons why YC exists, because if you're ready, come apply, get in, you can quit your job. It's a

Speaker 1

14:56

forcing function. So here's a question about investors. So this person says, I'm told much of the small talk that investors do is really a disguised way of identifying distractions.

Speaker 1

15:09

So specifically when investors ask about your kids or your social life, is that just a way that, you know, they're trying to identify red flags? And what's the best way to handle those questions or handle this casual seeming chit-chat?

Speaker 5

15:25

You have a good answer for this.

Speaker 4

15:28

I can take it. I mean, it's not just I think the question is actually broader than investor. I actually started my career as an engineer and went to the East Coast and then came back to Silicon Valley.

Speaker 4

15:38

So I've gotten this question many times, meaning when I was married, they wanted to know if I was on mommy track. I had a baby 10 years later. And, you know, when I was pregnant, it was like, am I going to quit? And now that I have a child, sometimes, you know, there are questions around how much time I can give.

Speaker 4

15:57

But to be like honest, like if you pick the right work setting, you don't run into that, right? So, but how do you handle these questions? 1 if these questions are with an intention of they're trying to find distractions it's a red flag like you may not want to work with that person because they truly don't understand where you come from and how committed you are to doing what you're doing. So in those cases like if you know someone asked me about staffing on a project and whether I was going to be pregnant I would just and if I felt that it was an uncomfortable question because they're trying to figure it out I just asked you know openly like why is it a concern and you know and often when you put people on the spot, they sometimes give it to you as is.

Speaker 4

16:37

And, you know, 1 of these managers had told me, well, I'm a little concerned because this project is really intense, so I just want to be sure. And I just respond, I knew the situation, so I just said, look, I won't be signing up for this if I didn't know I could do it. And that was enough to shut the problem aside and move on. So I think it depends on the situation.

Speaker 4

16:58

Some of them I do think maybe they're just asking just to get to know you, and that's sort of their way to break the ice. You have to tease apart why the question came. But if you've sensed that they're doing this because they wanna figure out if that's your distraction, just ask them openly. And that has always worked for me.

Speaker 4

17:14

And more often, after a few years, there was a joke within our firm, nobody would ever ask me that question. So that's another way to do that.

Speaker 3

17:23

There's a flip side to this, which is that I think we have heard from some founders that, married co-founders, that they didn't disclose to investors that they were married and then it kind of went on for too long and then they didn't actually know when to disclose it without it being super awkward. So that's something to navigate as well. I don't know what the exact right answer is there but that can come up so it's probably best to sort of be up front about some of this stuff.

Speaker 3

17:48

Kind of depends, but you don't want to hide the ball on this stuff, because it can get awkward later.

Speaker 1

17:53

Yeah, I mean, I think what Laura was saying in her talk about transparency, and being really transparent with investors is important, because that's, you know, she was saying that she hopes like, that, you know, she expects the same from them. Like, they'll be honest with her. And so I think probably it's best to bring up sooner than later.

Speaker 1

18:10

And if they don't, you know, invest in married couples, then like, forget them, right? But most of the investors I've talked to are not concerned by that, they just wanna know, right? I guess, so. So we only have a couple minutes left, so 1 question is, who are your mentors?

Speaker 1

18:30

And what, is there anything, I guess, really quick that they've taught you that's stuck with you?

Speaker 3

18:37

I'll go first. I think that I don't have a specific mentor that I can point to. And it kind of makes me laugh, this question, because when I was at the law firm where I worked before Y Combinator, I was in a women's group, and we endlessly debated the whole topic of mentorship, because there's this whole debate, like, should it be organic, or should you connect people?

Speaker 3

18:58

And we just, all we did was talk about it. But I didn't actually have a specific mentor but I realised like I learned a lot of stuff from every single 1 of my colleagues. I continue to learn from my colleagues at YC and 1 of my biggest takeaways that I've learned from my colleagues is customer service. And that applies in the legal world as well as everywhere else.

Speaker 3

19:17

Always give good customer service. Always put your client, customer, whatever it is, first.

Speaker 2

19:24

Yeah. It's kind of hard, I guess, doing what we're doing, which is such an unusual thing. That a lot of, you know, you kind of pick pieces of information up from lots of different people and it's all pieces of a jigsaw that you piece together. But definitely the people that we work with.

Speaker 6

19:42

I'm the same way, I pick up different things from different people and I just have this patchwork quilt of fabulous lessons that I've learned from people. And when the dinners are going on at YC and there's a founder telling their story, I am listening just as intently as all the founders in the group. I mean, I learned so much from the people that come through the doors of YC and my colleagues.

Speaker 5

20:06

When I was starting my startup, when I first came to Silicon Valley, there were some people that were influential and helped me along the way. So my former boss at the first startup, Max Levchen, he helped me a lot, and he in fact funded part of my startup, and Paul Graham of course. But I would say in terms of running my startup and someone to talk to on a weekly or even monthly basis.

Speaker 5

20:31

I didn't have that person and I wish I did. And I wish I had seeked that person out, I guess. And I think it's helpful to have someone who's not your investor, who you're not related to, who's not your friend per se, like a personal friend who you can talk to about these things and bounce ideas off of.

Speaker 1

20:46

Do you have any tips for folks looking for those people? Finding those people?

Speaker 5

20:52

So I didn't find 1, so I guess.

Speaker 6

20:54

This is not a debate.

Speaker 4

20:55

This is

Speaker 6

20:55

not a debate.

Speaker 5

20:56

This is not

Speaker 6

20:56

a debate.

Speaker 3

20:56

This is how do you find the person?

Speaker 1

20:59

It's tough, because you do want it to be organic, right, to some extent. But I think for me, some of the most important recurring people in my life have been advocates. So not just mentors, but people have always advocated for me, I think.

Speaker 1

21:12

I used to work with Alexis Ohanian, the founder of Reddit. He's always been like a cheerleader, like a supporter. But I think I would say the same thing. I pick up a lot from everyone I work with, especially you guys, and then also the founders that come in.

Speaker 1

21:27

I'm constantly learning. And then I also, as their companies grow, I also learn as they kind of share their experience with me. So I guess we are out of time. And so I hope you've learned as much as we have learned today, listening to the founders here.

Speaker 6

21:44

And Thank you for asking, ladies.

Speaker 4

22:00

You