Believe it or not I like this being the top story. We know there are lots of bugs in our process and we want to hear the bug reports.
I went back to look at the application. It fell immediately below the threshold for invitation to interviews. I.e. if even one of us had given them a grade one step better, they would have made it to interviews.
When we make mistakes, it's usually in this phase. Most of the time when we screw up it's by not inviting a group to interviews, rather than by interviewing them and turning them down. So this startup is exactly where a mistake would be most likely to occur: in the applications that fell just short of the cutoff for interviews.
The good news is, we'd already decided to fix this problem. We're going to do 3 interview tracks for s2012, which will let us interview 270 groups instead of the 180 we did last time.
If we'd done that last time, we would have interviewed these guys. But last batch was the first time we did parallel interview tracks at all, and we needed to test whether it worked for 2 before we went to 3.
I don't know if I'm going to be able to express what I feel but I'll try.
YC "bugs" are
- startups that are accepted and fail
- startups that are rejected and fail, but would have thrived had they been accepted
(Of course this last kind of bug is extremely difficult to track down.)
But if a startup makes a killing after being rejected by YC it means they didn't need you.
If you consider this a bug, there's some kind of moral problem because it means YC is trying to siphon every promising team in order to maximize YC's success, independently of who YC is likely to help more.
You're not just betting on horses, you're also training them: it seems what you should want to maximize is YC's impact...?
I don't think much explanation is necessary. YC is never going to catch every potentially successful startup. The process can be refined, but you will never recognize all of them. Averages being what they are, I think YC has done very well. The Codiqa team showed tenacity, and when YC didn't work out for them, they found another route. They are a great example for other startups. None of this should put YC in a negative light.
I can't imagine what it's like to go through so many applicants, so I won't.
A few thoughts:
- It would be interesting to see what made them 181 instead of 179. Would applicants this close to the cutoff get feedback of any kind about how they fared?
- Whoever ranks 271 might be missed out too in the future.
- Has any thought been given to sharing "you're this close" details with the 50 or 100 applicants that were within the proverbial whisker, or giving them a second review to see if any would move up or down relative to their peers in the same range?
I LOVE that you are calling them bugs and taking the selection process very seriously. We (Sandglaz) had a similar experience where we went from 4000 to 35000 users after YC rejection.
That said, interviews and applications are inherently subjective and based on a snapshot in time; they will always have "bugs". It is a tough thing to do, and I fully appreciate the effort going into it.
This post seems like a success story, so far. So how is not interviewing them a bug? If you are seeking startups who need help identifying how to get customers and how to create products people want, then it seems that Codiqa doesn't fit. Codiqa has customers and is making products people want.
Said another way, the delta between where Codiqa stands today vs. where they would be had they been interviewed does not seem as large an opportunity as probably the opportunities you made for the companies you did select. Therefore, I'd say there's no bug.
Look at it this way: at least you interview everyone you accept. Most colleges interview only a few prospective students, and that's for a four year program rather than a three month one.
Here's a possible solution for the future, have YC former accepties conduct proxy interviews for applicants where ever they are in the country(world) on their convenience. It could help you out, unless you feel that the people you accept are unable to help you make your decision. Ivy league schools do it with alumni, YC could do it with alumni.
Are you guys keeping track of statistics of grades for applications? I am wondering if at some point there is a clear cut off that you can safely say we don't need to interview these groups. If it is a linear/gradual decrease I'd imagine it would be very difficult to find that threshold.
I don't know what to reply except that the very words 'process', 'interview', 'batch', 'moderation' these all exist to bring sanity and order into any system at the expense of mediocrity.
Like someone said "Micheal Jordan would NOT want to be selected by YC".
This means people like Mark Zuckerberg, Larry Page, Sergey brin, Bill Gates, Steve Jobs are not likely to come out of YC. Because the very fact that they have to go through layers of interview sessions, and then spend time performing to you, to get your attention like some performance artist performing to the king to get his attention means that is not going to happen.
Because people screw up in interviews. And a interview is generally no measure what the true story actually is. The guide to cracking interviews and performance is learning how to game the system. If your process is known to people outside,and they plan enough to cover all the corners and deal their cards well, they can game your interview process. That's how job hoppers who can do nothing hop around in circles of big successful companies. The situation from evaluating a 'good product' changes to evaluating 'how good the interview went'.
Nerds, Geeks of the best quality hate all this interviewing, playing-to-the-galleries-business. That is why they wish to build their own firm. Now if you subject them though the same bureaucratic process which they had otherwise go through in a traditional large corporate(Applying, interviewing etc) they are just going to go away, take money from somebody else and build some stuff in the same time.
If I would be building a business and need funding from somebody. I would go to them and explain them 'whats in it for them' and take their money.
But if have to go through the same large corporate styles process for this, I will be spending my time for something else. Because the very purpose my starting a business is to avoid that corporate styles processes.
You have to seriously ask what value you bring, or how different you are from anybody else. If you are just evaluating profit prospects(which I agree, is important), funding, taking profits back. Then really you are just another VC. There is nothing wrong with that. But that is what it boils down to.
I just want to add one thing: The quality of the presentation, design, and execution is better than many Ycombinator start-ups (at launch day/ first couple of months). I haven't tried the actual product, but from outside it looks neat and well presented.
Now there are lots of pretty damn good sites that YC alumni are making from launch day; but the fact that a good number isn't, suggests that PG might want to improve his filter process a bit.
Now there are lots of pretty damn good sites that YC alumni are making from launch day; but the fact that a good number isn't, suggests that PG might want to improve his filter process a bit.
Do beautiful sites at launch day correlate well with IPOs? I'll supply the answer: no. Many beautiful sites will not IPO. Many tech companies which IPOed had abominable sites at launch day. The long-term salience of this is an amusing historical footnote and nothing more.
> suggests that PG might want to improve his filter process a bit.
I'm not sure how this is related. From what I've observed, PG selects promising founders, not great site-builders. Is it fair to expect all of them to create beautiful sites?
It's great to see bootstrappers getting some well deserved love. Lots of attention goes to the startup lottery winners and it's good to have a reminder that you really can do it without funding just as well.
Not only that, but the longer you can delay taking funding, the less of your business you'll have to give away.
I hate the thought that getting funded is like winning the lottery. Yes, it is absolutely necessary for some startups, but far too many seem to treat it as an end in itself (presumably there are bragging points associated with being able to say you've been funded to the tune of X million)
Bootstrapping encourages you to keep your costs tight, focus on profit and revenue, ship early, quickly and often, and build something people want.
I would like to argue that having success at getting founding is more predictable than being successful at bootstrapping a company. However, I think the majority of businesses are bootstrapped, you just don't hear as much from them. It really depends on business idea if taking venture capital makes sense or not. Some businesses are able to generate money quickly and don't require a large upfront investment, others do.
I'd never heard of Codiqa until I read this post, but I'm glad I did. Really impressive app, I'll definitely be using this to build mobile apps in the near future.
Congrats guys! I wholeheartedly believe in bootstrapping over funding. Keep that company to yourselves. I played around with Codiqa on the jquerymobile site and what you've put together is truly impressive. I've worked with startups in the past and I haven't seen any as well put together.
Well done guys! Your web site looks pretty great and I'll be trying it out in a sec. I wondered myself if submitting early is a wise decision. I submitted our application a month before the due date but then we changed our idea entirely. I would hope the guys didn't read the original one and moved on.
Edit: I also think that YC should not be what decides whether you create your startup or not. It is great to see you guys kept going. The people that decide to change ideas or abandon their startup because of not getting into YC tell me that they are pretty good at picking people that aren't serious about creating a successful business.
I like the edit. Anyone that would stop working on their startup because they didn't get funded by YC or TechStars probably shouldn't be doing a startup in the first place.
This is what i like to hear! In the future, more and more start ups will be the ones choosing who to get funding from. Power always lies with those who create. Congrats, and keep up the good work!
Congrats on the success here. You asked for some suggestions in the blog post. I'm going to make them publicly for the benefit of other HNers but if you want rationales and don't want the followup public just find my email.
1) Strongly, strongly consider capturing CCs at signup. Yes, this takes a bit more work. Yes, this will decrease your conversion rate. However, you're going to get more people successfully charged than you do currently.
2) There exist things you can do to increase user engagement with the app which will increase conversion rate from "user" to "signup", even if you don't take advice #1. I have a video coming out in a little while about this. Short version: go take the free trial of Balsamiq Mockups and take copious notes about what they do. In particular, note how Balsamiq doesn't start you out with a blank screen and note the timing and frequency of prompts for you to signup. Implement both of those things. Your conversion rate will increase.
3) You captured my email address for a "paid" signup. Good! I got no email from you. Bad! You should, bare minimum, hit my inbox with "Thanks for signing up for Codiqa. Your free trial lasts until XX/YY." followed by the best three bullet point sales copy you can come up with, linking back to your site extensively. Why? Because I already forgot your domain name (literally true) and statistically speaking I already forgot I signed up for Codiqa. Hitting my inbox is a free chance at recapturing my attention tomorrow when I do my morning email pass.
4) But wait, if one email is good, isn't five emails better? YES! Put a wee little checkbox on your signup form saying "Can we email you a free course about JQuery mobile? Five emails, absolutely no spam, opt out any time." You'll get 40%+ signups. If they sign up, you hit them on day 0, day 6, day 15, day 20, and day 28 with emails of approximately the following format.
Thanks for signing up for a free month-long course on JQuery Mobile by Codiqa, the jQuery mobile design app you used recently. (You asked for this when you signed up. Don't want it? No problem, click here.) This is your 2nd email out of 5. Today's topic is how jQuery mobile cuts app development costs while increasing revenue.
(h2) jQuery Mobile Cuts Development Costs by 50% (/h2)
Paragraph of copy. (~300 words) Link to codiqa docs or blog in here somewhere.
(h2) Another bullet point (/h2)
Another paragraph.
(h2) Another bullet point (/h2)
Another paragraph
Conclusion paragraph goes here. Early in the email sequence the conclusion paragraph just mentions your service, establishes expectations for the next email, and invites them to email you at any time. Later in the sequence you get salesy as heck.
What does salesy as heck mean? By the fifth email you should, if you're good at writing and jQuery Mobile, have your most engaged customers eating out of your virtual hands. The fifth email is less about education and more about one focused case delivered by their favorite jQuery Mobile expert on why buying the $30 a month plan, specifically, today, is the best possible thing they can do to improve their life today.
Execute correctly on this and you will print money. How much money? Just a comparable: for BCC, which is far less sophisticated on the email than this trick is and which has terrible unit economics, I make about twenty cents per email I send. If I tell you how many orders of magnitude that number can be improved by, four different consulting clients are going to demand my spleen sauteed with a glass of chianti.
5) Charge more! Or at least give an option for charging more. $30 a month is rat droppings to a business doing mobile development. (You will not get that feedback from some HNers. That's OK. Five hundred HNers refusing to buy your product plus one business charged $500 a month = $6,000 of revenue a year.) Put a $250 a month plan in there. You will sell it, to someone who a) does not need to pay $250 of his own money to buy it and b) receives well in excess of that much value from your service.
@patio11 If I may ask you a quick meta question: How much time do you spend writing a post on HN? I noticed that in contrary to when I joined, most of my posts get voted up, but I also spend more time then I should writing and rewriting them. Writing as many high value posts as you do would be unsustainable for me (even if I could). Do you just have an incredible natural talent in writing, so that you pull those posts out while having breakfast? Or is it years of practice, in which you perfected this skill?
Thank you Patrick, great ideas! We did start with the credit card being required. We took it out so more people could experience the premium plan before knowing if they want to buy. To be honest we didn't leave it like that for more than a week so I have no data on it.
Also, I agree, our pricing is too low. Our focus right now is on developers who can use Codiqa for work purposes. That has a higher value than $10/mo.
We are going to experiment with some of these ideas and blog about them. Thanks again.
Strongly, strongly consider capturing CCs at signup. Yes, this takes a bit more work. Yes, this will decrease your conversion rate. However, you're going to get more people successfully charged than you do currently.
Does anyone else have any other opinion on this? I am currently trying to decide whether CC should be a mandatory field or not for my app (which will have a 30-day free trial). What kind of impact on conversion are we talking about?
Great idea and it does look very slick and well executed, but from the little playing around I did it just didn't feel as fluid as a desktop app would. I'd definitely prefer a native desktop application to html and js, perhaps with an option to view and tweak my creations with the web interface when I'm off site.
Y combinator should only be one of the avenues to be explored by an entrepreneur. My team (PayGuard) submitted an early application hoping that they would have more time to look at it, we still plan to update it before the March 28 deadline. We will apply again in the winter if we don't get in this summer since we're already quitting our jobs anyway. Getting accepted in the program will certainly jump us in the fast lane but we will not even slow down if we don't get in. My team have debated and made improvements to the idea for the past 6 months then we realized that the time for theorizing has ended and the time for building a product is now. We can't wait to test this out in the real world because we think there is a serious need for a payment system specializing in long distance and cross-border transactions.
Gobuzz was basically google alerts for people and companies that matter to you. We would send you an email each day (or more) with news about these people and companies. Near the end we also supported NLP stuff to find new people mentioned alongside your important contacts.
I still think it's a missing piece of the news world, but we lacked experience and did not dig in and focus.
The blog has a graph showing around 1500 paying customers, which is still amazing (nearly $15k / month revenue!). I'm guessing the missing 6000 odd are staying on the free plan.
I played with your app on the jquerymobile site... what immediately frustrated me is that it doesn't seem to be possible to align elements to the bottom of the frame. At least have an option for Footer elements!
Checked out the homepage on FF 11.0 and the gray text under "Pure jQuery Mobile" shows up as an unreadable light gray (vs. Chrome where it shows up fine). Might want to check that out.
Compliments on the execution of your site, platform and branding. This is well deserved success. Keep pushing and reapply to YC, I you want to, you'll make it!
Congrats guys - very interested to see what happens when the free trial period ends for the users who joined after Codiqa showed up on the jQuery Mobile site.
[+] [-] pg|14 years ago|reply
I went back to look at the application. It fell immediately below the threshold for invitation to interviews. I.e. if even one of us had given them a grade one step better, they would have made it to interviews.
When we make mistakes, it's usually in this phase. Most of the time when we screw up it's by not inviting a group to interviews, rather than by interviewing them and turning them down. So this startup is exactly where a mistake would be most likely to occur: in the applications that fell just short of the cutoff for interviews.
The good news is, we'd already decided to fix this problem. We're going to do 3 interview tracks for s2012, which will let us interview 270 groups instead of the 180 we did last time.
If we'd done that last time, we would have interviewed these guys. But last batch was the first time we did parallel interview tracks at all, and we needed to test whether it worked for 2 before we went to 3.
[+] [-] bambax|14 years ago|reply
YC "bugs" are
- startups that are accepted and fail
- startups that are rejected and fail, but would have thrived had they been accepted
(Of course this last kind of bug is extremely difficult to track down.)
But if a startup makes a killing after being rejected by YC it means they didn't need you.
If you consider this a bug, there's some kind of moral problem because it means YC is trying to siphon every promising team in order to maximize YC's success, independently of who YC is likely to help more.
You're not just betting on horses, you're also training them: it seems what you should want to maximize is YC's impact...?
[+] [-] yesimahuman|14 years ago|reply
[+] [-] AdamFernandez|14 years ago|reply
[+] [-] j45|14 years ago|reply
A few thoughts:
- It would be interesting to see what made them 181 instead of 179. Would applicants this close to the cutoff get feedback of any kind about how they fared?
- Whoever ranks 271 might be missed out too in the future.
- Has any thought been given to sharing "you're this close" details with the 50 or 100 applicants that were within the proverbial whisker, or giving them a second review to see if any would move up or down relative to their peers in the same range?
0.02
[+] [-] zawaideh|14 years ago|reply
That said, interviews and applications are inherently subjective and based on a snapshot in time; they will always have "bugs". It is a tough thing to do, and I fully appreciate the effort going into it.
Best of Luck!
[+] [-] joedev|14 years ago|reply
Said another way, the delta between where Codiqa stands today vs. where they would be had they been interviewed does not seem as large an opportunity as probably the opportunities you made for the companies you did select. Therefore, I'd say there's no bug.
[+] [-] bicknergseng|14 years ago|reply
[+] [-] cinquemb|14 years ago|reply
[+] [-] mirsadm|14 years ago|reply
[+] [-] kamaal|14 years ago|reply
Like someone said "Micheal Jordan would NOT want to be selected by YC".
This means people like Mark Zuckerberg, Larry Page, Sergey brin, Bill Gates, Steve Jobs are not likely to come out of YC. Because the very fact that they have to go through layers of interview sessions, and then spend time performing to you, to get your attention like some performance artist performing to the king to get his attention means that is not going to happen.
Because people screw up in interviews. And a interview is generally no measure what the true story actually is. The guide to cracking interviews and performance is learning how to game the system. If your process is known to people outside,and they plan enough to cover all the corners and deal their cards well, they can game your interview process. That's how job hoppers who can do nothing hop around in circles of big successful companies. The situation from evaluating a 'good product' changes to evaluating 'how good the interview went'.
Nerds, Geeks of the best quality hate all this interviewing, playing-to-the-galleries-business. That is why they wish to build their own firm. Now if you subject them though the same bureaucratic process which they had otherwise go through in a traditional large corporate(Applying, interviewing etc) they are just going to go away, take money from somebody else and build some stuff in the same time.
If I would be building a business and need funding from somebody. I would go to them and explain them 'whats in it for them' and take their money.
But if have to go through the same large corporate styles process for this, I will be spending my time for something else. Because the very purpose my starting a business is to avoid that corporate styles processes.
You have to seriously ask what value you bring, or how different you are from anybody else. If you are just evaluating profit prospects(which I agree, is important), funding, taking profits back. Then really you are just another VC. There is nothing wrong with that. But that is what it boils down to.
[+] [-] tapertaper|14 years ago|reply
[+] [-] amalakhov|14 years ago|reply
[+] [-] csomar|14 years ago|reply
Now there are lots of pretty damn good sites that YC alumni are making from launch day; but the fact that a good number isn't, suggests that PG might want to improve his filter process a bit.
[+] [-] patio11|14 years ago|reply
Do beautiful sites at launch day correlate well with IPOs? I'll supply the answer: no. Many beautiful sites will not IPO. Many tech companies which IPOed had abominable sites at launch day. The long-term salience of this is an amusing historical footnote and nothing more.
[+] [-] alagu|14 years ago|reply
I'm not sure how this is related. From what I've observed, PG selects promising founders, not great site-builders. Is it fair to expect all of them to create beautiful sites?
[+] [-] j45|14 years ago|reply
[+] [-] tomgallard|14 years ago|reply
I hate the thought that getting funded is like winning the lottery. Yes, it is absolutely necessary for some startups, but far too many seem to treat it as an end in itself (presumably there are bragging points associated with being able to say you've been funded to the tune of X million)
Bootstrapping encourages you to keep your costs tight, focus on profit and revenue, ship early, quickly and often, and build something people want.
[+] [-] ma2rten|14 years ago|reply
[+] [-] MattBearman|14 years ago|reply
[+] [-] Nowyouknow|14 years ago|reply
Need a marketing person? Give me a call.
[+] [-] sachingulaya|14 years ago|reply
[+] [-] mirsadm|14 years ago|reply
Edit: I also think that YC should not be what decides whether you create your startup or not. It is great to see you guys kept going. The people that decide to change ideas or abandon their startup because of not getting into YC tell me that they are pretty good at picking people that aren't serious about creating a successful business.
[+] [-] dlf|14 years ago|reply
[+] [-] cinquemb|14 years ago|reply
[+] [-] kgosser|14 years ago|reply
[+] [-] danvoell|14 years ago|reply
[+] [-] patio11|14 years ago|reply
1) Strongly, strongly consider capturing CCs at signup. Yes, this takes a bit more work. Yes, this will decrease your conversion rate. However, you're going to get more people successfully charged than you do currently.
2) There exist things you can do to increase user engagement with the app which will increase conversion rate from "user" to "signup", even if you don't take advice #1. I have a video coming out in a little while about this. Short version: go take the free trial of Balsamiq Mockups and take copious notes about what they do. In particular, note how Balsamiq doesn't start you out with a blank screen and note the timing and frequency of prompts for you to signup. Implement both of those things. Your conversion rate will increase.
3) You captured my email address for a "paid" signup. Good! I got no email from you. Bad! You should, bare minimum, hit my inbox with "Thanks for signing up for Codiqa. Your free trial lasts until XX/YY." followed by the best three bullet point sales copy you can come up with, linking back to your site extensively. Why? Because I already forgot your domain name (literally true) and statistically speaking I already forgot I signed up for Codiqa. Hitting my inbox is a free chance at recapturing my attention tomorrow when I do my morning email pass.
4) But wait, if one email is good, isn't five emails better? YES! Put a wee little checkbox on your signup form saying "Can we email you a free course about JQuery mobile? Five emails, absolutely no spam, opt out any time." You'll get 40%+ signups. If they sign up, you hit them on day 0, day 6, day 15, day 20, and day 28 with emails of approximately the following format.
Thanks for signing up for a free month-long course on JQuery Mobile by Codiqa, the jQuery mobile design app you used recently. (You asked for this when you signed up. Don't want it? No problem, click here.) This is your 2nd email out of 5. Today's topic is how jQuery mobile cuts app development costs while increasing revenue.
(h2) jQuery Mobile Cuts Development Costs by 50% (/h2)
Paragraph of copy. (~300 words) Link to codiqa docs or blog in here somewhere.
(h2) Another bullet point (/h2)
Another paragraph.
(h2) Another bullet point (/h2)
Another paragraph
Conclusion paragraph goes here. Early in the email sequence the conclusion paragraph just mentions your service, establishes expectations for the next email, and invites them to email you at any time. Later in the sequence you get salesy as heck.
What does salesy as heck mean? By the fifth email you should, if you're good at writing and jQuery Mobile, have your most engaged customers eating out of your virtual hands. The fifth email is less about education and more about one focused case delivered by their favorite jQuery Mobile expert on why buying the $30 a month plan, specifically, today, is the best possible thing they can do to improve their life today.
Execute correctly on this and you will print money. How much money? Just a comparable: for BCC, which is far less sophisticated on the email than this trick is and which has terrible unit economics, I make about twenty cents per email I send. If I tell you how many orders of magnitude that number can be improved by, four different consulting clients are going to demand my spleen sauteed with a glass of chianti.
5) Charge more! Or at least give an option for charging more. $30 a month is rat droppings to a business doing mobile development. (You will not get that feedback from some HNers. That's OK. Five hundred HNers refusing to buy your product plus one business charged $500 a month = $6,000 of revenue a year.) Put a $250 a month plan in there. You will sell it, to someone who a) does not need to pay $250 of his own money to buy it and b) receives well in excess of that much value from your service.
[+] [-] ma2rten|14 years ago|reply
[+] [-] yesimahuman|14 years ago|reply
Also, I agree, our pricing is too low. Our focus right now is on developers who can use Codiqa for work purposes. That has a higher value than $10/mo.
We are going to experiment with some of these ideas and blog about them. Thanks again.
[+] [-] karterk|14 years ago|reply
Does anyone else have any other opinion on this? I am currently trying to decide whether CC should be a mandatory field or not for my app (which will have a 30-day free trial). What kind of impact on conversion are we talking about?
[+] [-] highace|14 years ago|reply
[+] [-] EREFUNDO|14 years ago|reply
[+] [-] rokhayakebe|14 years ago|reply
[+] [-] yesimahuman|14 years ago|reply
I still think it's a missing piece of the news world, but we lacked experience and did not dig in and focus.
[+] [-] kappaknight|14 years ago|reply
If so, congratulations! =)
[+] [-] MattBearman|14 years ago|reply
[+] [-] lordlicorice|14 years ago|reply
[+] [-] fam|14 years ago|reply
[+] [-] yesimahuman|14 years ago|reply
[+] [-] jordhy|14 years ago|reply
[+] [-] shyknee|14 years ago|reply
[+] [-] debacle|14 years ago|reply
[+] [-] NameNickHN|14 years ago|reply