YC's new optional application question is not just a technical test but a 'Rorschach test' for a founder's modernity. It assesses how deeply they've embraced AI coding tools like CloudCode, filtering for advanced, creative users over those with only basic prompting skills.
YC has always prioritized founders over ideas. The new focus on AI coding proficiency deepens this philosophy. A founder's ability to rapidly iterate with modern tools is the key evaluation metric, as the original idea is increasingly seen as temporary and less important than execution velocity.
Tools like YC Roaster, which process hundreds of accelerator applications, can generate a powerful data asset. By analyzing these submissions, a VC can spot market trends and identify promising sectors before they become public knowledge via demo days, creating a significant information advantage.
Data from the YC Roaster tool reveals a large number of applicants are from outside the US and unable to relocate for the program. This suggests a significant portion of the widely cited 20,000 applications per batch are non-starters, making the real competition for qualified spots less intense.
Lobster Capital's YC Roaster, an AI-powered application reviewer, demonstrates a new VC playbook. By offering a free utility, funds build brand loyalty and make founders feel valued before they even raise money, creating a powerful, early-stage deal flow advantage.
A VC's relevance is now tied to their hands-on experience with modern tools. Limited Partners should add a new question to their due diligence: 'What have you built with CloudCode recently?' A lack of practical application is a red flag, indicating the VC may be out of touch with today's builders.