Key Moments

Lessons From Doing YC Twice - Harj Taggar

Y CombinatorY Combinator
Science & Technology5 min read34 min video
Feb 7, 2017|18,265 views|178|1
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TL;DR

Harj Taggar discusses YC, Triplebyte, hiring, and founder lessons from doing YC twice.

Key Insights

1

Triplebyte, co-founded by Harj Taggar, is a marketplace connecting software engineers with companies, focusing on skills over resumes through an evaluation process.

2

Hiring trends favor 'product engineers' and demonstrated coding productivity over theoretical knowledge, with a shift towards practical, timed coding challenges.

3

Coding bootcamps can be effective for individuals with prior engineering backgrounds transitioning into programming, but may not be ideal for experienced engineers.

4

Doing YC a second time with Triplebyte provided a crucial deadline for product development and expanded the network of potential B2B customers.

5

Past success and network access can be beneficial for fundraising but carry the risk of raising too much money too early and losing focus without traction.

6

Effective sourcing of engineers involves quality content creation, providing a positive candidate experience, and leveraging referrals; remote vetting via screen sharing is viable.

7

Prioritizing traction is paramount in fundraising, overshadowing founder background; mentors should encourage founders to focus on solving real problems rather than vanity projects.

8

Building deep domain expertise and a network organically through shared projects is a more sustainable approach to finding co-founders than explicit searching.

9

Taking a sabbatical for travel can offer a valuable personal break from the intense startup world, providing perspective without necessarily yielding profound revelations.

FOUNDING TRIPLEBYTE AND ITS MISSION

Harj Taggar, a multiple-time YC alumnus and former YC partner, co-founded Triplebyte with Guiam, Armon, and Michael Cyborg. Triplebyte operates as a marketplace connecting software engineers with hiring companies. Its unique approach bypasses traditional resume screening by rigorously evaluating engineers' skills directly. This method aims to identify talented individuals who might be overlooked in standard processes and to filter out those with impressive resumes but lacking technical aptitude, ensuring better matches for companies.

THE EVOLUTION OF ENGINEERING HIRING

The idea for Triplebyte emerged from the shared experience of founders and observation at YC about the difficulty companies face in hiring. The market's demand has shifted towards 'product engineers'—individuals who understand how technical solutions impact users, revenue, and growth, rather than just being drawn to complex technical problems. This trend is complemented by a move away from theoretical knowledge assessment towards evaluating coding productivity through practical exercises and debugging tasks, signaling a preference for real-world application over abstract understanding.

ASSESSING CANDIDATES AND BOOTCAMPS

Companies are increasingly favoring hands-on coding challenges over lengthy take-home projects, as the latter can reduce candidate participation. While coding bootcamps can be controversial due to mixed company experiences, top-tier graduates can be on par with CS majors. Bootcamps are particularly beneficial for individuals with existing engineering backgrounds who are transitioning into programming, equipping them with relevant tools; however, they are less suited for seasoned engineers. For high school students, a CS degree offers long-term foundational knowledge and versatility, while bootcamps provide a faster path to a first job in web development.

THE STRATEGIC ADVANTAGE OF A SECOND YC RUN

Harj Taggar chose to go through YC a second time with Triplebyte due to the program's power as a forcing function for early-stage companies. With an idea but no prototype, YC provided a deadline and structure to accelerate development and launch. Additionally, being part of a YC batch offers significant benefits for B2B companies like Triplebyte, providing access to a network of potential customers and valuable feedback in a low-risk environment, which was crucial for their marketplace model.

FUNDRAISING AND TRACTION: THE ULTIMATE METRICS

The fundraising landscape has evolved significantly; in 2007, YC was informal, whereas by 2015, it was a highly legitimate accelerator geared towards building large companies. Harj stresses that traction is the most critical factor in fundraising, more so than a founder's previous successes or network. While background and connections can open doors, they can also lead to premature over-funding and a loss of focus. The core lesson learned from YC partnership is that all aspects of a startup are secondary until genuine traction is achieved.

NAVIGATING COMPETITION AND GROWTH METRICS

During a YC batch, it's tempting to feel competitive, but Harj advises against it, noting that loud self-promotion doesn't correlate with success. He also addresses criticisms that YC overly focuses on growth at the product's expense. Harj argues that optimizing for growth, using the appropriate metric for the company's stage—whether user acquisition, customer discovery, or revenue—is essential. For Triplebyte, optimizing the rate of engineer screening was the key growth metric, aligning with their revenue realization timeline.

STRATEGIES FOR SOURCING AND VETTING ENGINEERS

Sourcing engineers effectively involves creating valuable content, providing a positive candidate experience, and encouraging referrals. Companies can build goodwill by offering personalized feedback to candidates, fostering positive word-of-mouth within the engineering community. For early-stage companies, prioritizing referrals and interpersonal skills over pure aptitude is recommended. Remote vetting via screen sharing on platforms like Google Hangouts is a viable method, allowing candidates to showcase their skills in a comfortable, familiar environment and offering insight into their problem-solving process.

THE ROLE OF BACKGROUND AND FOUNDER ETHICS

While past successes and networks help gain initial access in fundraising, they can also lead experienced founders to raise too much capital too early, potentially steering the company in wrong directions. Harj emphasizes that a startup is only 'real' when it has users, traction, and growth. He advises founders, especially those with prior success, to avoid 'blue sky vanity projects' by focusing on solving actual problems. YC's emphasis on growth provides an environment to ensure focus on tangible progress rather than abstract ideas.

CHOOSING WHAT TO WORK ON AND FINDING CO-FOUNDERS

Harj suggests that the best way to start a company is not to explicitly seek one but to develop deep domain expertise in interesting areas or problems. Alternatively, establishing clear criteria for an idea and filtering potential projects against them, as was done with Triplebyte, is also effective. Finding co-founders ideally occurs organically through collaboration on projects, rather than explicit searching. Building friendships with individuals possessing complementary skills over time within a shared problem space is more sustainable than actively seeking a co-founder.

THE VALUE OF A SABBATICAL AND PERSONAL GROWTH

Harj took a sabbatical between his YC partnership and founding Triplebyte, fulfilling a long-held desire for travel. While beneficial personally, it didn't yield profound life revelations, contrary to popular narratives. The experience provided a much-needed break from the constant influx of information and startup ideas, offering perspective. He noted that sometimes a degree of 'ignorance is bliss,' as first-time founders often succeed by being unaware of the immense difficulty and competition, simply pressing forward with their ideas.

Advice for Aspiring Founders and Engineers

Practical takeaways from this episode

Do This

Focus on product engineers who think about user impact and revenue, not just technical problems.
Prioritize coding productivity and familiarity with tools over pure theoretical knowledge in technical interviews.
Consider bootcamps for individuals with a prior engineering background looking to pivot into web development.
For high school students, weigh the time-to-job benefits of bootcamps against the foundational knowledge of a CS degree.
Leverage YC's structured environment as a forcing function for early-stage product development and focus.
For B2B companies, YC can be invaluable for acquiring early customers and feedback.
Focus on traction above all else when fundraising; VCs care about growth.
Build deep domain expertise in an area before starting a company related to it.
When seeking co-founders, aim for complementary skills and build relationships organically over time through collaboration on projects.
For sourcing engineers, create valuable content about technical interviewing and hiring processes.
Provide personalized feedback to candidates to generate positive word-of-mouth.
Prioritize referrals and working relationships when hiring, valuing teamwork over slightly higher skill levels.
Use remote vetting tools like Google Hangouts for objective skill assessment.
Don't be afraid to do YC multiple times if it accelerates your company's traction.
Optimize for the right growth metric for your company stage, whether it's customers, user engagement, or revenue.
Take time to step back, travel, and get away from the startup world to gain perspective.
Seek out problems you are passionate about and build expertise in those areas.
Treat co-founder search like a funnel: meet many people, identify potential collaborators, and then focus on one project together.

Avoid This

Do not rely solely on resumes or background checks for evaluating engineers; focus on actual skills.
Avoid relying solely on whiteboard interviews; consider practical coding assessments.
Don't recommend bootcamps for experienced engineers.
Don't expect YC in 2007 to be the same as in 2015 – the program has evolved significantly.
Avoid feeling overly competitive with other batch mates; focus on your own company's progress.
Do not let the loudest voices in a YC batch dictate your strategy; success doesn't correlate with self-promotion during the batch.
Don't focus on metrics that sound impressive at dinner parties; optimize for real traction and problem-solving.
Avoid raising too much money too early, which can lead to misdirected efforts and a false sense of company stability.
Don't get stuck optimizing for vanity projects or seeking feedback from everyone; focus on solving a real problem.
Don't explicitly look for co-founders; build friendships and relationships with people who have complementary skills.
Don't view doing YC a second time as a sign of weakness to VCs; traction is the key.
Don't assume that past successes guarantee future ones; focus on the current traction of your new venture.
Don't neglect the importance of a good candidate experience in your hiring process; it can generate word-of-mouth.
Don't let a lack of prior CS degree deter you from a software engineering career if you have other engineering experience or determination.
Don't expect profound life revelations from travel; value the experience for its own sake and perspective gained.
Don't try to 'kid yourself' into believing you have a real company without genuine users and traction.

Common Questions

Triple Bite is a marketplace that connects software engineers with companies. Unlike traditional agencies, it focuses on evaluating engineers' skills directly through practical assessments, bypassing resumes and background checks to find the best technical fit.

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