There are 247 startups in the YC S24 batch. You’re probably not going to meet them all. So how can you find the best ones?

I look at every single startup, meet around 10-20% of them, and invest in perhaps one. Here’s how I do it…

The Directory is Your Friend!

YC produces a wonderful tool: the YC Startup Directory. It contains details on every single YC company, from Airbnb to the latest batch.

Here’s how I use it to find great new startups:

1. Choose the current batch (S24 is the current one)
2. Sort by “Launch Date” instead of “Default.” Then, I can see each new startup as its product launches. If they’re pre-launch, they’re too early for me to meet with.
3. Look at each page, see what looks interesting. What’s novel? What’s new?
4. Contact the founders. Their LinkedIn is on the right hand side of the page.
5. Set up meetings. The directory page is a great way to prep for these meetings. It’s almost like a mini-deal memo.

What I’m Looking For

I look for companies with $200-500k of live ARR. Very few YC companies have this, but some do.

Those are the folks I’m looking for! If you see a company with $100-300k ARR while still in YC, that’s one of the strongest in their batch.

A more typical YC startup might have a couple thousand a month in revenue, at best. A weaker one might not have any.

The Gift That Keeps on Giving

Yesterday, I met a YC company with an incredible product. The founders had great experience and were highly technical.

But they only had a couple thousand a month in live MRR. This is a good start, but too early for me.

So, I made a note to follow up with them next summer. By that point, they’ll probably be raising again.

Startups are always raising money. Always. Don’t feel like you have to invest now.

In a year or so, you’ll probably be able to invest again at the same price with a lot more traction! In fact, I’ve invested in 3 different YC companies this way in recent years.

Why Demo Day Is Too Late

I start contacting YC companies as soon as possible. I never wait until Demo Day.

In some cases, I already knew the founders before they applied to YC. I may be one of the first people to hear about their admittance, and I make sure to set a meeting with them.

Otherwise, I watch the YC directory like a hawk. Whenever an interesting new startup launches, there I am. 🙂

But why not just wait for Demo Day?

The best startups fill their funding round before Demo Day. If you wait until the herd sees them, you won’t be able to get into that round.

Wrap-Up

Investors love to complain about YC. “Wahhh, the valuations are too high, I want my mommy!”

Boo hoo.

They sorted through thousands of companies and picked the best ones. Then they funded them and gave them the best coaching on the planet.

The deal is friggin’ gift wrapped for you. And you want that at a $8M post?

I think YC is a wonderful part of startupland. Indeed, it’s hard to imagine a world without it.

Now, back to trolling the directory!

What do you think of YC?

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