20VC: Behind the Scenes at Y Combinator: The Interview Process | What the Best & Worst Do in the Program | Do the Best All Raise Pre-Demo Day & YC's Fundraising Advice to Startups | Why the Value is in Application Layer AI with Tom Blomfield
Tom Blomfield, a Group Partner at Y Combinator and co-founder of unicorns Monzo and GoCardless, shares his transition from founder to investor. He discusses the selective Y Combinator application process and what signals he looks for in high-quality founders. Tom also reveals common pitfalls startups face during their accelerator journey and offers fundraising advice, especially leading up to demo day. He highlights the evolving landscape of AI and its dual role as both a sustaining innovation and a disruptive force in tech.
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question_answer ANECDOTE
YC Impact
Tom Blomfield's YC acceptance in 2011 transformed his career.
It provided crucial role models and access to successful founders, leading to Monzo's creation.
question_answer ANECDOTE
Fundraising Challenges
Tom Blomfield faced 96 rejections while fundraising for Monzo.
A seemingly secured investment fell through due to COVID-19 lockdown, forcing a down round.
insights INSIGHT
Empathy Through Fundraising
Fundraising experience is crucial for truly understanding founders.
Many investors lack this empathy, hindering their ability to support and advise effectively.
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Tom Blomfield is a Group Partner at YC. Before YC, Tom founded two unicorns in the UK. He was co-founder of Monzo (most recently valued at $5BN), one of the first challenger banks in the UK. Monzo raised more than £1bn and counts 15% of the UK population as customers. Before Monzo, Tom founded GoCardless (YC S11), an online payments processor, most recently valued at $2.1BN.
In Today's Episode with Tom Blomfield We Discuss:
1. From Founding Two Unicorns to YC Partner:
Does Tom believe that all great founders show signs of exceptionalism early?
What does Tom know now that he wishes he had known when he started his first company?
Why did Tom decide now was the right time to switch from founder to investor with YC?
2. The YC Application Process: How it Works:
How do the YC partners select which companies are accepted vs rejected?
What specifically does Tom look for in the problem the company is looking to solve?
In the interview, what are the signals of the highest quality founders?
What questions does Tom always want to ask in YC interviews with founders?
3. The YC Batch: How it Works:
How do the YC partners work with the 25 companies in their batch? What is the interaction?
What are the single biggest mistakes companies make while in YC?
What are the biggest pieces of advice YC gives founders on fundraising approaching demo day?
How do the best YC founders fundraise and use demo day? How do the most nervous fundraise?
How are YC partners measured in terms of their success and effectiveness?
4. AI: Consumer vs Enterprise/ Infrastructure vs Application Layer:
Does Tom believe there is money to be made investing in infrastructure layer models today?
Why is the commoditization of foundation models the best outcome for society?
Why is Tom most excited about the application layer for the next wave of AI?
What are the most exciting opportunities in consumer AI that are wide open today?
20VC: Behind the Scenes at Y Combinator: The Interview Process | What the Best & Worst Do in the Program | Do the Best All Raise Pre-Demo Day & YC's Fundraising Advice to Startups | Why the Value is in Application Layer AI with Tom Blomfield
The Twenty Minute VC (20VC): Venture Capital | Startup Funding | The Pitch