YC's dark side: How getting into YC might harm your startup

There is also a dark side of high evaluations, pulling you out of shipping a real value for your customers... If you like YC, VCs or not, this is a view worth reading while building your startup business... It can save you a huge portion of life, and money...

Last week, I spoke with several startup incubators and accelerators, and one thing stood out: the incredible role they play in shaping early-stage startups. Many shared that most founders struggle with nailing their go-to-market strategy and navigating the first fundraise, two challenges that can make or break a young startup. That’s where accelerator programs step in. They don’t just provide structure, they offer a fast-track ecosystem designed to help founders move faster, validate quicker, and avoid costly mistakes. ✨ 𝐇𝐞𝐫𝐞’𝐬 𝐡𝐨𝐰 𝐭𝐡𝐞𝐲 𝐚𝐝𝐝 𝐯𝐚𝐥𝐮𝐞: 𝐌𝐞𝐧𝐭𝐨𝐫𝐬𝐡𝐢𝐩: Direct access to experienced founders, investors, and industry experts who’ve been through the journey. 𝐅𝐮𝐧𝐝𝐢𝐧𝐠 𝐎𝐩𝐩𝐨𝐫𝐭𝐮𝐧𝐢𝐭𝐢𝐞𝐬: Seed capital or investor connections that help remove early bottlenecks. 𝐑𝐞𝐬𝐨𝐮𝐫𝐜𝐞𝐬 & 𝐖𝐨𝐫𝐤𝐬𝐡𝐨𝐩𝐬: Structured learning on pitching, sales, marketing, and scaling operations. 𝐍𝐞𝐭𝐰𝐨𝐫𝐤 𝐄𝐟𝐟𝐞𝐜𝐭: Peer founders, alumni, and corporate partners who can open doors overnight. Instead of learning by trial and error over years, accelerators compress that journey into 3–6 months, helping founders focus on what truly matters, building something that lasts. For many startups, joining an accelerator isn’t just an opportunity; it’s the moment everything clicks. If you’re an early-stage founder, it’s worth exploring accelerator programs in your sector. The right one can truly change your trajectory. 🚀 #StartupFunding #EarlyStageInvestments #Tracxn #LiveDeals

Something I've found strikes fear into Series B/C/D founders is having multiple voting classes amongst their VCs. Everyone can veto separately. Here's how it usually goes down: At the Seed stage, the founders signed their first term sheet and took on their first institutional VC. It was a pretty founder-friendly term sheet, yet the VC got veto rights across some economic and management areas. When raising the Series A, the startup was in a good, but not great, position. Only one VC offered a term sheet and one of their requests was having a separate voting class from the Seed stage VC. The founders gave in on this issue. Prior to the Series B, the startup was humming again and multiple VCs came to the table. But because of the precedent of multiple voting classes being set in the prior round, all the Series B VCs now wanted their own voting class. So the founders relented. Now 7 years into running the startup, the founders have some major business decisions to make, and also have the option to acquire a couple businesses. The problem? Each of their three lead VCs has different economic incentives at play and each has the power to individually veto these major business & acquisition decisions. The reason separate voting classes strikes fear into later-stage founders is they've essentially lost control of their startup. Yes, the moment they took VC they lost some control. But having multiple voting classes amongst VCs is a whole other level—each VC may have its own incentives—and now the founder must rally each VC individually to make major decisions. So if you're a founder raising your second priced round from institutional investors, think long and hard before you allow multiple voting classes amongst your VCs. It may just set the precedent and restraints that keep you from running your business the way you want to. ______________ Hi, I'm Jorian Hoover - I work 1:1 with founders to run high-quality fundraises and have helped 50+ founders raise over $190M. For more startup fundraising guides, how-to's, and insights delivered regularly to your inbox, subscribe to my "Into the Ring" newsletter at https://lnkd.in/ezj_zYXz

Most people think that closing a VC round means startup success, the reality is much different. The tech media tends to celebrate startup success as a synonym to their ability to close funding rounds from VCs and private equity investors. It sounds so impressive and grand - The startup closed a $21m round led by this mega VC. The truth is that I have never seen a founder after closing a funding round, consider themselves as successful, in fact, most founders just feel more pressure to deliver. Getting investors on your cap table with more money allocation, means that you need to return more to your shareholders now. The more money you raise, the more capital you commit to return. You probably have new faces on your board. The dynamics might change and now you need to navigate a new reality in the company. You need to hire faster, deliver faster and show growth. If you have been a part of a company that closed a VC round, you know that there will be great momentary joy, maybe a party that the company will organize to recognize that funding event. Employees are dancing, swag is everywhere, some will get bonuses. However, in those moments, look at the faces of the co-founders. Of course, they are happy, but the amount of thoughts running in their heads are emotional, complex and sometimes confusing. Being a close partner to many founders and CEOs during those times, it is like a fast moving movie that runs in their heads. Things are moving at all different directions, a mix of short term and long term ambition, plans, scenarios. It's like being in a dream that goes from a dream come true to a nightmare and alternate quickly. I have three pieces of advice for founders on how to act after they close a fundraise: 1. Set up individual 1:1s with your advisors and mentors - no agenda, just check ins. Focus on how you feel, your thoughts and reflections and listen. 2. Write down your thoughts - some would do this in public in a blog, or just a simple diary that you can run for your own sake. Sometimes sharing this writings with your close circle would allow them to support you better. 3. Take a week off or go a bit early every day to spend time with your family - family and kids keeps you grounded, give perspective on what matters most, it also a way to get people who love you to surround you in chaotic moments. Next time you hear of that massive funding round, look into the founders eyes, and know that for them, it's just the beginning. ✍ Join today to my new Newsletter, with more learning and content for startups, VCs and innovators on illai.substack.com. #VentureCapital #Founders #Startups #Entrepreneurship

The biggest risk for early-stage founders isn’t the product. It’s being invisible. You can have world-class technology. A brilliant team. Even YC behind you. But if nobody outside your circle knows you exist, you’re already behind. One founder I talked to last week regrets not sharing their journey from the beginning. Now they're scrambling to catch up. While you’re silent, your competitors are telling their story. ↳ They’re booking the meetings you want ↳ They’re hiring the talent you need ↳ They’re winning the customers you should have Here’s the reality: ↳ Only ~19% of startups that raise seed ever make it to Series A ↳ Only 35% of YC startups raise Series A within 24 months. ↳ 400+ alumni are already inactive Staying invisible is the most expensive decision you can make as a founder. Because funding isn’t just about technology. It’s about trust. It’s about momentum. It’s about being seen. That’s why I work with founders at this stage: To help them get known, get noticed, and get the meetings that matter. If you just got into YC or are preparing for your Series A, now’s the time to get loud.

One big reason why startup founders should get D&O insurance is cofounders can get into disputes about their equity when they leave and though disputes that descend into legal disputes are not that common. Knowing you have insurance to cover any potential legal cost give founders the peace of mind to make decision based on the fact and not the cost if the other party decides to sue. The longer the startup been around the higher this risk will be priced in by insurer. Getting coverage at the right time for the risks vs the cost in a startup growth journey is important and a good broker experienced in this sector should be able to discuss this with founders

🚀 Only 1% of startups raise a successful seed round. Why? Because most founders misunderstand what VCs are actually looking for. Here’s a breakdown refined with what we see every day at M2A: 📌 What to focus on at each funding stage: 🔹 Pre-Seed → Your team and credibility At this stage, it’s not about the idea—it’s about you. Investors ask: Can this founder execute? Do they know the space? Have they built before or shown real grit? ✅ Show commitment, domain insight, early product steps, and founder fit. 🔹 Seed → TAM (Total Addressable Market) and traction Now it’s about proof. VCs want to know: Is this market worth chasing? Are people already using and paying for your product? ✅ Bring numbers, feedback loops, pilot customers, and early sales. 🔹 Series A → Scalable Go-To-Market engine You've validated the product—now prove you can scale it. VCs look for GTM clarity: Who are your customers? How do you reach and convert them efficiently? ✅ Present CAC, LTV, funnels, sales team structure, repeatable channels. 🔹 Series B → Repeatability and financial performance This is no longer about potential—it’s about performance. VCs want to see that your growth machine works, quarter after quarter. ✅ Show revenue consistency, burn control, forecasting accuracy, and team maturity. 💡 Bonus insight from the field: More and more founders are skipping entire rounds: 👉 Bootstrapping to Series A 👉 Raising one lean round, reaching profitability, and staying independent 👉 Each venture is different. 👉 Each round is unique. 👉 No checklist fits all. It’s about matching your story with the right investor at the right time. #venturecapital #startups #fundraising #seedfunding #seriesA #gtm #traction #founderlife #pitchdeck #earlystage #m2a #clarityovercharisma #startupfunding #growthfunding

Most people assume the best founder pipelines come from top-tier accelerators or global VCs. But sometimes, the biggest unlocks start quietly, on a university campus. That’s what happened when Matrix co-hosted a program with a university incubator. Instead of chasing the “usual” startup hubs, we leaned into a geography that investors rarely track. The result? A pipeline of hungry, high-intent founders building where no one was looking. And because the incubator knew the ground reality, the collaboration wasn’t surface-level It was execution-first. Here’s why this mattered: Access to untapped talent Trust by association Shared outcomes — Instead of a logo swap, we co-created programming that actually moved founders closer to traction → funding. This is what we mean when we say: Big logo ≠ big impact. The sharpness of the fit matters more than the size of the partner. At Matrix, we don’t just add partners to a slide. We co-design outcomes with the ones who move at founder speed. Takeaway for founders: The ecosystem that shapes you might not be the one everyone’s watching. The right bridge, even if it’s small, can unlock markets you didn’t know existed. What’s the most underrated collaboration you’ve seen change a founder’s trajectory? #UniversityStartups #Incubators #Founders #Partnerships

I may offend a lot of founders but your idea means nothing to Investors. I genuinely come across founders who believe they will raise capital solely based on 'A UNIQUE IDEA'. Well, recently I shared a UNIQUE deal with my network, and guess what? They had already met - 3 different brands - In the last 14 days - With the same idea Well, you see investors analyze a lot of startups. But founders expect VCs to be blown away by their "unique" idea However, for investors, it's like watching the same movie with a different cast! 🙄 So what do you have to show a part of your idea to make you be able to raise with VCs and angels? Here are 3 things you can show -You are executing -You are a domain expert -You have ''been there, done that" At the end of the day, investors just want to see that you've got a track record of making stuff happen. What do you think matters more? The Idea? OR The 3 qualities listed above? Would you like to add anything? Fundraising? Fill out the form in the bio. ________________ Connect with me Pranay Oberoi (Persuasive Decks, Fundraising, Branding) I help pre-seed to Series A companies 📄Build investment collateral 📽️that tells impactful stories 🫨and makes the investor say 'Yes' #pitchdeck #startups #founders

Today marks the start of another cohort at Charge Incubator in 𝙊𝙨𝙡𝙤, 𝙉𝙤𝙧𝙬𝙖𝙮, and honestly, it never gets old. For the past 3+ years, I've been working with immigrant founders here, watching them go from "I have this crazy idea" to actually building businesses that matter. It's messy, it's real, and it's some of the most rewarding work I do. The trailer below shows snippets from our sessions where we dive into the stuff that keeps founders up at night: cap tables that make no sense, financial models that break every time you touch them, and figuring out what investors actually want to see. No fluff, just practical help for people building real companies. What I love about these founders is they bring perspectives that others miss. They see problems differently, solve them creatively, and aren't afraid to challenge how things "should" be done. After investing in 40+ startups across 6 continents, what I can definitely tell you is that this diversity of thinking is what creates breakthrough solutions. If you're building something that tackles real problems, 𝗹𝗲𝘁'𝘀 𝘁𝗮𝗹𝗸. And if you run an accelerator, fund, or program and need someone who's been in the trenches with founders at every stage, from first pitch to Series A, 𝗺𝘆 𝗗𝗠𝘀 𝗮𝗿𝗲 𝗼𝗽𝗲𝗻. Here's to another year of turning bold ideas into businesses that actually work. 🎬 #startup #financialmodeling #captable #investment #mentor #duediligence #dataroom #investor