The Hidden Criteria Behind a YC Yes: Yotam on Founder Signals, and the Real Work Behind a Yes

Episode SummaryYotam Rosenbaum never planned to be a startup founder, let alone one of Australia’s most active investors in Y Combinator companies. He started out as a musician, marketing his own band in Los Angeles, until the frustration of promoting music online became the spark for building Earbits, a platform once described as “Google AdWords for music.” What began on a traffic-jammed freeway turned into a five-year journey through Y Combinator, product-market chaos, and a successful exit.Since then, Yotam has backed over 400 YC startups, built one of the only Australian-led funds inside the program, and helped founders at home think far beyond local markets. He reflects on what actually matters at the earliest stages, why founder relationships trump early traction, and how to spot the quiet signals of a breakout team. There’s also a reality check for anyone raising capital: most investors won’t give you a clear no, and that’s the real cost.From Craigslist drum lessons to portfolio unicorns, Yotam’s story is anything but typical. But it’s proof that trusting your sense of direction, without needing the whole map, can still get you somewhere remarkable.Time Stamps00:01:17 – Embracing Uncertainty: Yotam’s Philosophy on Direction Without a Map00:06:41 – From Funk Band to Founder: The Origins of Earbits00:11:05 – The Aha Moment: Building the Google AdWords for Music00:14:58 – Joining Y Combinator: Early Traction & Getting In00:20:04 – Life at YC: Feeling Out of Place, Finding Belonging00:24:29 – Investing in 400+ YC Startups: How It Started Post-Exit00:31:19 – Moving to Australia: The Hot DesQ Bet That Paid Off00:36:35 – Comparing Ecosystems: SF vs Brisbane Startup Mindsets00:41:09 – The Importance of Community: No Founder Builds Alone00:45:39 – The 77 Partners Venture Challenge: Who It’s For00:50:24 – What Investors Look For (It’s Not Just Revenue)01:03:01 – How Founders Can (And Should) Think About AIResources Mentioned🥇 First Peak Ventures - https://www.linkedin.com/company/first-peak-ventures/🤝 77 Partners – http://www.77partners.vc/🙋🏻‍♂️ Yotam Rosenbaum on LinkedIn – https://www.linkedin.com/in/yotamrosenbaum/👂🏻 Earbits – https://www.earbits.com/Sponsors:Perspective X is supported by our wonderful sponsors:Vanta: Vanta is the all-in-one solution for startups to become compliant quickly and build a security foundation with ease. Startup customers get $1000 off Vanta at dayone.fm/vanta/paulineMighty Partners: Mighty Partners is a growth lender supporting ambitious Australian companies with bespoke debt funding solutions.Day One listeners are invited to book a complimentary venture debt consultation with Mighty Partners. To schedule your call, simply follow the link and mention "Day One Free Consult"dayone.fm/mighty Perspective X is part of Day One.Day One helps founders and startup operators make better business decisions more often. To learn more, join our newsletter to be notified of new Perspective X episodes and upcoming shows. Mentioned in this episode:Vanta_PX_May 2025Mighty Partners_PX_May 2025

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