Y-Combinator is a “boot-camp” seed starting company. Let’s say you have a digital start-up, but you have no idea how to fund it. You have done your due diligence, you have found your direction, you have discovered a burning passion, and you are ready. Y-Combinator will fund you, depending on how many founders you have set ($14,000 for one founder, $3,000 for each additional). They take an average of 6~7% of equity from your company as a trade.
But what make’s Y-Combinator so genius? They have an arsenal of resources to deploy once you’re ready. They have a number of digital marketing tools in the form of high publicity blogs, tech articles, and social platforms. They create the buzz for you so that in the tail end, their exit strategy, they are able to sell to huge multi-billion corporations.
From Y-Combinator’s website:
In 2005, Y Combinator developed a new model of startup funding. Twice a year we invest a small amount of money (average $18k) in a large number of startups (most recently 65). The startups move to Silicon Valley for 3 months, during which we work intensively with them to get the company into the best possible shape and refine their pitch to investors. Each cycle culminates in Demo Day, when the startups present to a large audience of investors. But YC doesn’t end on Demo Day. We and the YC alumni network continue to help founders for the life of their company, and beyond.
Since 2005 we’ve funded over 380 startups, including Loopt, Reddit, Clustrix, Wufoo,Scribd, Xobni, Weebly, Songkick, Disqus, Dropbox, ZumoDrive, Justin.tv, Heroku, A Thinking Ape, Posterous, Airbnb, Heyzap, Cloudkick, DailyBooth, WePay, Bump, Stripe,AeroFS, and Hipmunk.