YC
The Challenges a Repeat Founder Faces - Tikhon Bernstam
@ Y Combinator
09/09/17
Takeaways
TB
Tikhon Bernstam
09/09/17
@ Y Combinator
I found Y Combinator because I was on Reddit during graduate school, where I discovered Paul Graham's essays that inspired me to pursue starting a company, despite the prevailing belief that the web was over after the dot-com crash.
TB
Tikhon Bernstam
09/09/17
@ Y Combinator
I applied to Y Combinator on a long shot, not expecting to get in, but after interviewing in Palo Alto, I was accepted and dropped out of graduate school to pursue my startup.
TB
Tikhon Bernstam
09/09/17
@ Y Combinator
Scribd was initially a pivot company; we applied with different ideas before landing on the concept of creating a platform for documents, inspired by the success of YouTube and the need for better document sharing.
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Tikhon Bernstam
09/09/17
@ Y Combinator
The Y Combinator experience was invaluable; the community of motivated individuals and guidance from partners like Paul Graham helped us stay on course and saved us years of effort.
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Tikhon Bernstam
09/09/17
@ Y Combinator
Back in 2006, Y Combinator provided a fixed amount of $6,000 per person, which was significantly less than what startups receive today, but it was enough for us to survive while building Scribd.
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Tikhon Bernstam
09/09/17
@ Y Combinator
After Y Combinator, we struggled financially for about a year, living off savings and working out of a friend's living room, which was made possible by the generosity of his parents.
TB
Tikhon Bernstam
09/09/17
@ Y Combinator
We launched Parse quickly during Y Combinator, using a simple landing page to gauge interest, which was crucial for validating our idea before fully developing the product.
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Tikhon Bernstam
09/09/17
@ Y Combinator
Parse became a platform that significantly accelerated mobile app development, allowing developers to focus on the client-side while we handled the backend complexities.
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Tikhon Bernstam
09/09/17
@ Y Combinator
After leaving Scribd, I immediately discussed new ideas with Paul Graham, and we decided to apply to Y Combinator again, even though we didn't have a product yet. I co-founded a subscription billing service called PipePay, but we didn't want to compete directly with Stripe, which was doing really well at the time.
TB
Tikhon Bernstam
09/09/17
@ Y Combinator
We were looking for unique angles in the payments space, such as anti-fraud solutions.
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Tikhon Bernstam
09/09/17
@ Y Combinator
The first time we went through Y Combinator (YC), we wouldn't have made it without their support, and I felt the same way the second time.
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Tikhon Bernstam
09/09/17
@ Y Combinator
I still feel like I know very little about startups, and having a community of motivated people around me is incredibly valuable.
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Tikhon Bernstam
09/09/17
@ Y Combinator
Having my first customers in the YC batch was extremely helpful because I could get immediate feedback on my mobile app.
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Tikhon Bernstam
09/09/17
@ Y Combinator
We constantly launched new features and received feedback during weekly dinners with other founders, which kept us honest about our progress.
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Tikhon Bernstam
09/09/17
@ Y Combinator
I found our core segment of developers who wanted to create native apps much faster, including agencies working for big brands like the Green Bay Packers and Cadillac.
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Tikhon Bernstam
09/09/17
@ Y Combinator
We used feedback from our users to improve our product rapidly, which was crucial for our success.
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Tikhon Bernstam
09/09/17
@ Y Combinator
We raised $5.5 million after our demo day, which was a quick process due to our traction and the interest from investors.
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Tikhon Bernstam
09/09/17
@ Y Combinator
After Parse was acquired by Facebook, I took a break and traveled for two years, which was a refreshing change after years of working non-stop.
TB
Tikhon Bernstam
09/09/17
@ Y Combinator
I learned that many international startup scenes are trying to replicate Silicon Valley, but it's more effective to focus on niche markets and build supportive communities.
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Tikhon Bernstam
09/09/17
@ Y Combinator
The most common question I received while speaking at conferences was about how to raise money, highlighting the challenges of building an angel ecosystem outside Silicon Valley.
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Tikhon Bernstam
09/09/17
@ Y Combinator
I encourage international entrepreneurs to apply to programs like Y Combinator or 500 Startups, as they provide invaluable support and resources.
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Tikhon Bernstam
09/09/17
@ Y Combinator
I focus on investing in startups with large markets and relentless founders, as these factors are crucial for success. I admire solo founders who can persevere for a year or longer by themselves, as it's already hard enough to go through the startup journey alone.
TB
Tikhon Bernstam
09/09/17
@ Y Combinator
A strong team in a great market will eventually build the right product, as the market will guide them towards it, even if it feels like a struggle.
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Tikhon Bernstam
09/09/17
@ Y Combinator
Investors often overlook the potential of existing large markets, thinking they are too crowded, but if you can create a significantly better product, there's room for many winners.
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Tikhon Bernstam
09/09/17
@ Y Combinator
Second-time founders often feel pressure to come up with a genius idea, but the best startups usually succeed by simply doing something better than existing options.
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Tikhon Bernstam
09/09/17
@ Y Combinator
As a repeat founder, I believe it's crucial to avoid raising money too early; focus on achieving strong product-market fit before seeking investment.
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Tikhon Bernstam
09/09/17
@ Y Combinator
For first-time founders, the only thing that matters is working on your product and finding product-market fit; everything else is a waste of time.