Ask PG: Do you review rejected YC apps to find startups who then made it big?

Whenever a startup we rejected seems to be succeeding, we go back and try to figure out why we rejected them. Occasionally we change the application process as a result.

We don't start from the applications though. We hear from news stories when startups are doing well, and then we go back and look at their application.

Answering as if your question said "And does that make you want to change your application process", because the first time I read it I thought it did.

My understanding of the essays I've read is that there wouldn't be much point in it. Ideas evolve or change entirely, and more importantly people improve. If the gut feeling was no then, all you know is that something changed.

Based on a question answered by PG on Askolo, YCombinator track them[1]:

Q: Have there been any startups you've later regretted rejecting from YCombinator? A: Sure, several. But I can't name names because it's not for me to disclose that they applied.

Additionally they also mention about contacting them on rejected applications[2]:

"If you do, we'd appreciate it if you'd send us an email telling us about it; we want to learn from our mistakes"

Here are some that are known to have been rejected by YC and have gone onto raise funding (which is not a perfect metric by any means since funding ≠ success) or have been acquired:

- SendGrid - http://sendgrid.com/ - Raised $27.4M[3]

- CouchOne - http://www.couchbase.com/ - Raised $56M[4]

- AfterTheDeadline - http://afterthedeadline.com/ - Acquired By Automattic

- LightSail Energy - http://lightsailenergy.com/ - Raised $42.8M[5]

- SignPost - http://www.signpost.com/ - Raised $15M[6]

- Storenvy - http://www.storenvy.com - although they were kicked out of YC[7] Raised $6.5M [8]

[1] https://web.archive.org/web/20120814111130/http://askolo.com...

[2] http://ycuniverse.com/yc-applying-interviewees

[3] http://www.crunchbase.com/company/sendgrid

[4] http://www.crunchbase.com/company/couchbase

[5] http://www.crunchbase.com/company/lightsail-energy

[6] http://www.crunchbase.com/company/signpost

[7] http://joncrawford.com/post/20378314843/how-i-got-kicked-out...

[8] http://techcrunch.com/2013/02/12/storenvy-goes-from-getting-...

Yes. This has been mentioned by PG numerous times in numerous places.

Useful context> http://graphics.wsj.com/billion-dollar-club/

Edit: with older data included> http://tctechcrunch2011.files.wordpress.com/2013/11/unicorn-...

It would be a difficult study... How many YC companies would have failed if they had not been accepted to YC? Certainly, a number of rejected companies who later failed may have thrived under YC.

Presumably, if they were to 'make it big' he would probably hear about this through other channels without having to constantly monitor a large pool of rejected applicants.

Why so much 'Ask PG' lately when he never replies, let alone read them?

I'm starting to think "Ask PG" are linkbait titles disguised as "Ask HN".

what a stupid ask. why wouldn't a vc do this? Isn't this something that would be a big part of the iterative application process. I doubt the process has remained unchanged over the years. As new feature vectors of success are identified it would be a very inept investor who didn't consider how to integrate that back into their process. And PG is not an inept investor.

Hashtag PGQuestionOfTheWeek

Reviewing rejected apps would be a waste of time given how many apps YC has received. Also, what does 'big' mean? I doubt a startup exists that was rejected by YC then grew to a $1B valuation--someone would probably have heard of that by now, made a big deal of it, and those of us on HN would know. But I don't doubt that YC-rejected startups have gone on to raise a few rounds of funding and/or may have even made <$100M exits.