V
Garry Tan of YC: Why The Next Unicorns Are Built By AI | Frameworks for Growth
@ Vanta
05/21/25
Takeaways
GT
Garry Tan
05/21/25
@ Vanta
AI is driving unprecedented growth in startups, allowing small teams to achieve significant revenue milestones quickly, sometimes reaching $10 million a year within 12 months.
GT
Garry Tan
05/21/25
@ Vanta
The last three batches of Y Combinator have consistently grown their revenue by 10% week on week, a feat not seen before in previous cycles.
GT
Garry Tan
05/21/25
@ Vanta
The primary reason startups fail is that they don't create something people want, either by making the wrong product or failing to make anything at all.
GT
Garry Tan
05/21/25
@ Vanta
Vibe coding is emerging as a method for startups to reach product-market fit, allowing founders to build products that people actually want without being hindered by technical limitations.
GT
Garry Tan
05/21/25
@ Vanta
The ability to succeed in startups is increasingly determined by founders' understanding of customer needs rather than their technical skills.
GT
Garry Tan
05/21/25
@ Vanta
Recent pivots in startups often involve founders shifting from ideas they think they should pursue to those they know intimately, leading to more successful outcomes.
GT
Garry Tan
05/21/25
@ Vanta
Startups that rapidly scale to eight figures in revenue often do so with very small teams, demonstrating that fewer employees can still drive significant growth.
GT
Garry Tan
05/21/25
@ Vanta
Founders today must embrace the role of product manager, understanding user needs and motivations to create products that truly resonate with customers.
GT
Garry Tan
05/21/25
@ Vanta
Empathy for the user is crucial in design; understanding their goals and motivations is key to creating products that are significantly better than existing solutions.
GT
Garry Tan
05/21/25
@ Vanta
Founders are encouraged to gain firsthand experience in customer-facing roles, such as working in call centers, to better understand their users' needs. I think the best way to deeply understand someone's problem is to do the job directly, like a medical biller did by working in the field while developing software.
GT
Garry Tan
05/21/25
@ Vanta
It's becoming more common for founders to come from outside their industry and succeed, which has been rare in the past decade.
GT
Garry Tan
05/21/25
@ Vanta
If I were a software engineering graduate today, I'd focus on mastering AI coding platforms and then get a job to understand the industry better.
GT
Garry Tan
05/21/25
@ Vanta
The goal of Y Combinator is to create thousands of startups that solve real problems and create jobs, rather than have people join big tech companies.
GT
Garry Tan
05/21/25
@ Vanta
The mantra at Y Combinator is to 'make something people want,' which is essential for solving most startup problems.
GT
Garry Tan
05/21/25
@ Vanta
First-time founders often have a 'beginner's mind' that allows them to approach problems without biases, which is a significant advantage.
GT
Garry Tan
05/21/25
@ Vanta
YC encourages doing things that don't scale, like Airbnb did by taking high-quality photos of homes to increase bookings. Don't wait for processes to be perfect before scaling; just get started in an unscalable way to unlock potential.
GT
Garry Tan
05/21/25
@ Vanta
You know you've found product-market fit when customers are actively pulling the product out of you, often indicated by high demand and feedback.
GT
Garry Tan
05/21/25
@ Vanta
If I were in charge of AI regulations, I would ensure that human oversight is required in decision-making processes to prevent a scenario where AI operates without accountability.
GT
Garry Tan
05/21/25
@ Vanta
The rise of open-source AI is exciting because it fosters competition and choice, preventing monopolistic scenarios in the tech industry.
GT
Garry Tan
05/21/25
@ Vanta
Being vulnerable and sharing your mistakes can resonate more with audiences than showcasing only successes; authenticity is key in content creation.
GT
Garry Tan
05/21/25
@ Vanta
It's surprising how difficult it is for leaders to let go of employees, even when it's necessary for the organization's health; this reluctance can lead to a toxic culture.
GT
Garry Tan
05/21/25
@ Vanta
Coaching founders on how to handle difficult decisions, like letting someone go, involves helping them focus on the future and being resolute in their choices.