Y Combinator

new standard deal</a> of $500,000 gives you some slack, you will likely have to develop very smart habits around spending because fundraising is harder. Learning how to <a href=https://www.ycombinator.com/"http://www.paulgraham.com/aord.html/">stay alive</a> is arguably the most important skill you can have as a founder.I don’t think it’s a coincidence that two of the top YC companies, Airbnb and Stripe, were started in the depths of the last recession (2009).* They learned how important it is to build something people want and not assume investors will be there to save them early on.None of this is new. It’s common knowledge, especially in the tech community, that many successful startups were created during recessions (just search “startups + recession” and you’ll find a bunch of articles), which may be one reason we’ve seen high numbers of applications from founders leaving their big tech company jobs, especially in the last couple of months.If running a startup is like commanding an army, then YC is elite basic training. You’ll learn how to navigate the challenges (or realize you’re not up for it) when your company is small and with the support of advisors and YC batchmates. You’ll build a solid foundation of learning how to build something people want and staying alive. The YC training prepares you by default for succeeding through recessions. And it’s easier to internalize that training today when the macroenvironment supports it. The alternative is learning it on the battlefield when the stakes are way higher — when you’ve already raised money and have employees who depend on you. As YC founder Paul Graham <a href=https://www.ycombinator.com/"http://www.paulgraham.com/die.html/">wrote, “Bad shit is coming. It always is in a startup.” If you’re interested in starting a startup, we’re entering a counterintuitively good time to do it. It won’t be easy, but if you get through the early days, you’ll be better prepared than most. And if the challenge excites you, you probably have the right personality for it.*Their products were also tailored to a cost-sensitive environment. Stripe made it easier for brick-and-mortar businesses to cut costs by selling online and Airbnb created a new income stream for hosts and lower-priced accommodations for travelers.","comment_id":"63ed7c5ebb97530001aa5cd2","feature_image":"/blog/content/images/2023/02/stephblog.png","featured":true,"visibility":"public","email_recipient_filter":"none","created_at":"2023-02-15T16:44:14.000-08:00","updated_at":"2023-02-21T08:30:00.000-08:00","published_at":"2023-02-21T08:30:00.000-08:00","custom_excerpt":"In an economic downturn, there are obvious downsides of starting a startup — but there are also powerful upsides; because to survive, you have to *actually* build something people want.","codeinjection_head":null,"codeinjection_foot":null,"custom_template":null,"canonical_url":null,"authors":[{"id":"61fe29e3c7139e0001a710c8","name":"Stephanie Simon","slug":"stephanie","profile_image":"/blog/content/images/2022/02/steph-af6b11e61b7a3c55b099c780fe0a359236ceaab496850b530d178aedb8cefb2c.jpg","cover_image":null,"bio":"Stephanie Simon is the Head of Admissions at Y Combinator. \n\nPrior to YC, she was a software engineer at Earnest and co-founded Murmur, a venture-backed local search startup.","website":null,"location":null,"facebook":null,"twitter":null,"meta_title":null,"meta_description":null,"url":"https://ghost.prod.ycinside.com/author/stephanie/"}],"tags":[{"id":"61fe29efc7139e0001a71173","name":"YC News","slug":"yc-news","description":null,"feature_image":null,"visibility":"public","og_image":null,"og_title":null,"og_description":null,"twitter_image":null,"twitter_title":null,"twitter_description":null,"meta_title":null,"meta_description":null,"codeinjection_head":null,"codeinjection_foot":null,"canonical_url":null,"accent_color":null,"url":"https://ghost.prod.ycinside.com/tag/yc-news/"},{"id":"61fe29efc7139e0001a7116d","name":"Essay","slug":"essay","description":null,"feature_image":null,"visibility":"public","og_image":null,"og_title":null,"og_description":null,"twitter_image":null,"twitter_title":null,"twitter_description":null,"meta_title":null,"meta_description":null,"codeinjection_head":null,"codeinjection_foot":null,"canonical_url":null,"accent_color":null,"url":"https://ghost.prod.ycinside.com/tag/essay/"},{"id":"61fe29efc7139e0001a7117d","name":"Admissions","slug":"admissions","description":null,"feature_image":null,"visibility":"public","og_image":null,"og_title":null,"og_description":null,"twitter_image":null,"twitter_title":null,"twitter_description":null,"meta_title":null,"meta_description":null,"codeinjection_head":null,"codeinjection_foot":null,"canonical_url":null,"accent_color":null,"url":"https://ghost.prod.ycinside.com/tag/admissions/"},{"id":"63ed8ba5bb97530001aa5ced","name":"#271","slug":"hash-271","description":null,"feature_image":null,"visibility":"internal","og_image":null,"og_title":null,"og_description":null,"twitter_image":null,"twitter_title":null,"twitter_description":null,"meta_title":null,"meta_description":null,"codeinjection_head":null,"codeinjection_foot":null,"canonical_url":null,"accent_color":null,"url":"https://ghost.prod.ycinside.com/404/"},{"id":"63ed8ba5bb97530001aa5cee","name":"#240","slug":"hash-240","description":null,"feature_image":null,"visibility":"internal","og_image":null,"og_title":null,"og_description":null,"twitter_image":null,"twitter_title":null,"twitter_description":null,"meta_title":null,"meta_description":null,"codeinjection_head":null,"codeinjection_foot":null,"canonical_url":null,"accent_color":null,"url":"https://ghost.prod.ycinside.com/404/"}],"primary_author":{"id":"61fe29e3c7139e0001a710c8","name":"Stephanie Simon","slug":"stephanie","profile_image":"https://ghost.prod.ycinside.com/content/images/2022/02/steph-af6b11e61b7a3c55b099c780fe0a359236ceaab496850b530d178aedb8cefb2c.jpg","cover_image":null,"bio":"Stephanie Simon is the Head of Admissions at Y Combinator. \n\nPrior to YC, she was a software engineer at Earnest and co-founded Murmur, a venture-backed local search startup.","website":null,"location":null,"facebook":null,"twitter":null,"meta_title":null,"meta_description":null,"url":"https://ghost.prod.ycinside.com/author/stephanie/"},"primary_tag":{"id":"61fe29efc7139e0001a71173","name":"YC News","slug":"yc-news","description":null,"feature_image":null,"visibility":"public","og_image":null,"og_title":null,"og_description":null,"twitter_image":null,"twitter_title":null,"twitter_description":null,"meta_title":null,"meta_description":null,"codeinjection_head":null,"codeinjection_foot":null,"canonical_url":null,"accent_color":null,"url":"https://ghost.prod.ycinside.com/tag/yc-news/"},"url":"https://ghost.prod.ycinside.com/why-would-you-start-a-startup-in-an-economic-downturn/","excerpt":"There will likely be a recession in 2023, and the major downsides to starting a startup are obvious: There is less money in the system so selling and fundraising are harder; investors have less money to invest and companies have less money to spend on products.","reading_time":2,"access":true,"og_image":null,"og_title":null,"og_description":null,"twitter_image":null,"twitter_title":null,"twitter_description":null,"meta_title":null,"meta_description":null,"email_subject":null,"frontmatter":null,"feature_image_alt":null,"feature_image_caption":null},{"id":"61fe29f1c7139e0001a71c07","uuid":"c2233b91-77a7-46da-bace-85a0e7e1b73d","title":"Now Accepting Applications for YC Summer 2022","slug":"now-accepting-applications-for-yc-summer-2022","html":"The Winter 2022 batch is underway, and we’re excited to announce that we’re now accepting applications for Summer 2022. The summer batch will be remote with some optional in-person components depending on the pandemic. We will invest a total of $500,000 in every company accepted into the batch as part of our <a href=https://www.ycombinator.com/"https://www.ycombinator.com/deal/">new standard deal</a>.We will be offering an early deadline again this batch for founders who need early access to YC advice and resources. The early deadline is January 31 at 8pm PT, and we will be holding interviews in mid-February and early March. The founders who tend to get the most out of the early deadline are those who are actively fundraising; they benefit from advice on terms, investors, and timing before signing anything.If you’re not sure whether you should apply early, you’re probably better off waiting until the regular deadline: March 24 at 8pm PT.Whether you apply by our early deadline or our regular deadline, the latest you’ll hear back from us with a decision is May 19. The reason this is a ways away is because we know how much can change in a matter of months, and we want to give founders the option to update their applications. But if there are timing considerations we should be aware of, please make a note on your application. We’re happy to give you an answer sooner if you need it.Apply early for the YC Summer 2022 batch <a href=https://www.ycombinator.com/"https://www.ycombinator.com/apply/">here.

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