Don't worry about legal just apply to Y-Combinator

We got into YC with only an idea. No incorporation, no bank account, no contracts. We were preparing to talk to VCs in general and we filled the YC application on the day of the deadline. Less than a week later, we interviewed and got accepted.

What we had

An idea and a demo hosted in a $10 domain. No Delaware entity, no cap table, no lawyers engaged.

Why this is fine for YC

YC is a reputable investor. If they say yes, the money will arrive. That means you can ask lawyers to defer payment, or you can use your own money for initial filings and reimburse it later, because you know a clean wire is coming once things are set up. You do not need to finish legal before you apply.

The sequence that worked for us

• Submit the YC application with only the idea and a clear problem.
• Do the interview. Answer directly. Focus on users and the problem.
• After acceptance, engage with the law firm recommended by YC and defer fees until the wire lands.
• Incorporate with lawyers assistance & open bank account.

Once the company was incorporated and the bank account was open, we received the $500k wire from YC and we paid vendors. That included the legal work, filings, and any small costs we took on.

Closing remarks

The important thing is to focus on your startup and start building your product. The legal part will come later. If you want to build a demo like the one that got us into YC really fast, you can use Lumen to handle AI & credits super easily. Connect with me on LinkedIn if you have any questions.

Ramon Garate

Founder of Lumen