Business & Money · Framework

Everything They Teach at Y Combinator

A one-page reference summarizing core startup lessons from Y Combinator.

This reference sheet condenses core advice taught at Y Combinator across fundamental startup stages. It covers practical rules for team formation, idea validation, MVP speed, organic growth, PR, fundraising, and hiring. Founders can use it as a quick benchmark to audit their practices against established accelerator guidance.

The framework

Everything they teach at Y Combinator

Team

- 2-4 co-founders, minimum 50% engineers

- Make sure you have one year's worth of "ramen money" savings

- All founders must quit jobs completely

- No idea required to start

Idea

- Start brainstorming with teammates before ideas solidify

- One member typically has kernel of the idea

- Get early team buy-in and ownership

- Focus on solving personal problems you deeply understand

Initial steps

- Market research: verify billions in market potential

- Legal setup: set up US incorporation

- MVP development: launch within 2 months maximum

Growth

1. Ad experimentation (least recommended)

2. B2B customer references

a. Focus on providing amazing service, helps with word-of-mouth in industry

3. Built-in viral sharing for consumer products

a. Sharing must be core to product usage

PR

- Handle early PR yourself without agencies

- Treat PR like business development: get warm intros, build relationships, provide real value/news

- Focus on actual news: product launches, funding rounds, major hires, significant partnerships

Fundraising

- If you don't need money, people love to give it to you

- Schedule investor meetings within tight time frame

- Create momentum and FOMO, investors move because they have a fear of missing out

- Focus on showing growth

Operations

- Minimize expenses aggressively, get cheaper office space, reduce founder salaries

- Track all expenses monthly, review every line item

- Focus on extending runway

Hiring

- Each hire should increase company's average talent

- If you can't hire someone who's smarter than you, just do it yourself

- Be completely transparent about stock compensation, outstanding shares, salary benchmarks

- Build loyalty with early employees

- Keep team small and efficient, only hire when absolutely necessary

What it's for

  • Audit early-stage startup decisions against Y Combinator principles
  • Plan fundraising rounds using tight timelines to generate momentum
  • Structure founding team equity, runway, and technical ratios
  • Prioritize MVP launch speed and organic distribution channels

Key points

  • Team guidelines on co-founder numbers, engineering ratios, and runway
  • Idea generation principles focused on personal problem solving
  • Launch timeline emphasizing 2-month MVP execution
  • Distribution hierarchy prioritizing word-of-mouth and virality over paid ads
  • Founder-led PR strategy targeting genuine newsworthy milestones
  • Fundraising playbook focused on investor FOMO and condensed meeting schedules
  • Lean operations advice to extend runway and cut non-essential costs
  • High-bar hiring rules and transparent equity compensation advice

Pricing

Free

Details

Type
Framework
Category
Business & Money
Topic
Startup Advice
Open source
No
Platforms
other
For
Early-stage founders, startup operators, and aspiring entrepreneurs.
Tags
startups, y combinator, fundraising, entrepreneurship, mvp, hiring

Why it was saved

  • @benln, 23 January 2025: Condenses YC's core playbook into a scannable reference

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