First off, if you are thinking about applying, but you’re hesitant for whatever reason (because they take a chunk of equity, for example), I believe you should really consider where you want to take your company.  Whenever equity is involved (investment, advisory shares, a new founding team member, option grants, etcetera) you should always consider one thing: Are the people (or money) involved going to increase the value of the company by at least the amount of equity you’re giving up?  For us, it was obvious before we were even accepted that any equity provided to Y Combinator would be worth it for the future of DailyBooth.  After our experience with YC, this statement is even more true now.

Let me explain:

I don’t even have a degree, let alone one from MIT or Stanford.  I have approximately two quarters left at The Ohio State University, which has been deferred for now.  I grew up in Ohio, and Jon, my cofounder, grew up in the UK.  We had no connections to the Silicon Valley investors or any investors for that matter.  Without a doubt, if we were not accepted into Y Combinator, we would not be where we are today.  Y Combinator helped put us in front of Ron Conway which in turn put us in touch with many of our other investors.  For us, Y Combinator was significantly about the connections that were made possible throughout the whole process.

Y Combinator is not all about the connections.  Most people would agree that the chances of success with a startup is a long shot.  But that success is ultimately determined by the determination of the founders and their ability to morph their company.  As PG would say, startups don’t die, the founders quit.  However, not quitting is easier said than done.  Being part of a startup community helps tremendously and Y Combinator provides that community.

When you’re accepted into Y Combinator you are part of a community of 172 startups, that take every opportunity to help one another.  Being part of this community is invaluable.  Six months after our session of Y Combinator ended, the founders of S09 regularly meet, and I would consider us a close group of friends.  It just so happens, that we are all startup founders.  Belonging to a close group of startup founders is a major barrier to quitting.  I actually live with people from two other YC startups: WePay, which helps groups collect money and the other whose still in stealth mode.

I’ve really only skimmed the surface of what Y Combinator actually is and the value they add.