Buffer’s Y Combinator Application

What is your company going to make?

Buffer is an application for Twitter which helps people Tweet consistently without spending all day on Twitter. All people do is put tweets into their Buffer, and the app schedules tweets for them during the day.

We have started development on two core features: detailed analytics and a “Buffer button” for blogs. We make the sharing easier, and we make measuring the impact of your social media efforts easier.

Please tell us in one or two sentences about the most impressive thing other than this startup that each founder has built or achieved.

Joel: After graduating I founded a startup rather than getting a job. It reached 6,000 users and gave me the first real lessons of building a startup. The many mistakes contributed to how I approached Buffer.

Leo: I offered the Business School to build a better feedback system and although they agreed to it beforehand, I was threatened to be kicked out after pushing an MVP live as sharing data in such an interactive way for students, was not acceptable.

Please tell us about the time you most successfully hacked some (non-computer) system to your advantage.

I applied the 80/20 principle at University. There was an option where you could gain extra credit by doing more than the recommended load of work. I took Japanese as my extra class, and 3 of my 4 years it enabled me to finish with a mark of 76% although I averaged 70% in my classes.

Please tell us about an interesting project, preferably outside of class or work, that two or more of you created together. Include urls if possible.

There are no shared projects before Buffer.

How long have the founders known one another and how did you meet? Have any of the founders not met in person?

We met about 2 years ago at an entrepreneurs networking event and have bounced ideas off each other ever since.

Why did you pick this idea to work on? Do you have domain expertise in this area? How do you know people need what you’re making?

– I wanted to solve my own problem and was frustrated with how other tools approached scheduling tweets.

– Leo created a small company providing a learning centre for newcomers to Twitter in Austria.

– We have 44 people paying for Buffer on a monthly subscription.

What’s new about what you’re making? What substitutes do people resort to because it doesn’t exist yet (or they don’t know about it)?

– Buffer erases two steps twitter users usually had to take to schedule tweets. The first one being setting the time of each individual tweet. The second one being to go to your account in Tweetdeck or Hootsuite in order to schedule from there. With Buffer all you do is hit the Buffer icon on the page you are reading to add more tweets.

– If users are currently not using Buffer, they would be using “normal tweet scheduling”, such as SocialOomph, Hootsuite, Tweetdeck or any of the other about 10 similar services out there.

Who are your competitors, and who might become competitors? Who do you fear most?

– At the moment our competitors are the applications named above. In addition there are 3 more application, which are more closer to the nature of Buffer. They are Timely, Pluggio and 14blocks.

– Losing our focus on what the customer needs and focusing on whom we fear most is what we fear most.

What do you understand about your business that other companies in it just don’t get?

One of our users sent us this: “I really appreciate the “human” quality of your company. We try for that in our own company too for the exact reason that those are the kinds of companies we like to deal with ourselves.”

We understand making customers happy is the most important thing.

How do or will you make money? How much could you make? (We realize you can’t know precisely, but give your best estimate.)

– We are making $280/mo

– We have a consistent conversion rate from free to paid plans of 4%

– We have a strong acquisition engine through planned referral and affiliate programmes

– We have been focused on building a great product and have not give much thought to how much we could make. At current growth rate, a monthly income in the tens of thousands of dollars seems very achievable.

If you’ve already started working on it, how long have you been working and how many lines of code (if applicable) have you written?

We have been working on Buffer since October 2010. We have a fully functioning product which we are shouting about.

If you’re launched, what is your monthly growth rate (in users or revenue or both)?

We have 1500 users at the moment, of which 45 are paying. This gives us a monthly revenue of $280. Numbers of users is growing at 400% per month. Here is a chart:

If you have an online demo, what’s the url? (Please don’t password protect it; just use an obscure url.)

http://bufferapp.com

How will you get users? If your idea is the type that faces a chicken-and-egg problem in the sense that it won’t be attractive to users till it has a lot of users (e.g. a marketplace, a dating site, an ad network), how will you overcome that?

We have 3 main sources to get users:

– Via blogposts (we write a lot of reviews about our own product and submit them for guestposting or ask for being reviewed)

– Planned referral programme

– Planned affiliate programme

If you’re already incorporated, when were you? Who are the shareholders and what percent does each own? If you’ve had funding, how much, at what valuation(s)?

– We are not yet incorporated.

– We have had no funding.

If you’re not incorporated yet, please list the percent of the company you plan to give each founder, and anyone else you plan to give stock to. (This question is as much for you as us.)

– Joel founded Buffer in October, and Leo came on board in January. Leo will have 30% over a 3 year period. We would like some advice on this.

If we fund you, which of the founders will commit to working exclusively (no school, no other jobs) on this project for the next year?

Both

Do any founders have other commitments between June and August 2011 inclusive?

Leo will finish his exams at beginning of June.

Do any founders have commitments in the future (e.g. finishing college, going to grad school), and if so what?

Leo is having a year out from University to work on Buffer until Summer of 2012. Continuation thereafter is optional.

Where do you live now, and where would the company be based after YC?

We both live in the UK, Birmingham at the moment. We plan on moving the company to the US, Silicon Valley after YC.

Please tell us something surprising or amusing that one of you has discovered. (The answer need not be related to your project.)

We managed to create a DoS attack on ourselves. We have a Chrome extension which lets people add tweets, and which shows people how many tweets are left in their Buffer too. To show the number, the extension polled the server every 5 seconds. After a few hundred people installed the extension, we found the server almost came to a halt. After some investigation, we thought we were under attack and even started banning some IPs, of our own users! Glad we weren’t!

Feedback

Executive Summary:

The Buffer application to Y Combinator (YC) displays a clear vision for a social media management platform. The application details a Twitter-focused tool designed to streamline tweeting by scheduling posts for users throughout the day. They have started development on analytics and a "Buffer button" for blogs, aiming to facilitate sharing and the measurement of social media impact. The company planned to relocate from the UK to the US following YC acceptance. The founders, Joel and Leo, have individual achievements but lack a shared technical project history. Their financial metrics show a modest monthly revenue and a strong user growth rate but a small total revenue scale at the time of application. They show user-centric insight, though there may be concerns of depth in this burgeoning space.

Investment Thesis Relevance:

Buffer aligns with YC's investment focus on scalable technology startups, particularly those offering software as a service (SaaS). However, to better fit YC's portfolio strategy, Buffer could highlight their technical edge and scalability potential, as YC values technical founders making fast progress in large addressable markets. To enhance alignment, Buffer should articulate a broader vision beyond Twitter to encompass a more extensive social media management strategy, addressing risks and demonstrating a path to capturing a significant market share.

Market Understanding and Strategy:

The market strategy demonstrates an understanding of user needs in social media management, positioning Buffer as a tool that simplifies the process of scheduling and provides analytics. However, depth is compromised by not fully addressing how Buffer plans to compete with and differentiate from a crowded market. To improve, Buffer should present a more comprehensive competitive analysis, identifying specific features or market segments where they can uniquely excel and defend against potential entrants.

Business Model Evaluation:

The business model seems sustainable with a subscription-based approach, but the revenue scale and the conversion rate from free to paid users may raise concerns about long-term viability and significant market impact. Buffer should focus on strategies to increase the lifetime value of a customer (LTV) and reduce customer acquisition costs (CAC), possibly by expanding beyond Twitter to increase the service's relevance and utility.

Team Competency and Dynamics:

Joel and Leo showcase individual resourcefulness, but they lack a shared project background and might be evaluated as being less technically driven compared to YC's preference for technically adept teams. The team should emphasize any technical competencies and highlight how their combined skills uniquely position them to execute Buffer's vision. If there are technical gaps, these should be acknowledged with a plan to recruit or develop the necessary expertise.

Operational Efficiency and Milestone Achievement:

Their operational strategy reflects the ability to develop a functioning product and a thoughtful approach to feature implementation. However, the application lacks details on operational workflows and milestone planning, which could suggest a more robust approach to efficiency and scalability. Buffer would benefit from showcasing a clear operational roadmap, highlighting efficiency in development and go-to-market strategies.

Use of Language:

The language used in the application is clear and largely free from unnecessary jargon, effectively communicating the business concept. However, certain areas could be explained with greater precision, particularly in articulating the unique value proposition of Buffer over competitors. Buffer should ensure that each industry-specific term is necessary and complements the business proposition rather than complicating it.

Financial Health and Projections:

The financials depicted are modest, with a current monthly revenue of $280 and a small scale of paying users. The projections may appear overly optimistic given the early-stage revenue. Buffer should present more conservative, data-driven projections, discuss the scalability of their revenue model, and provide evidence of a deeper financial analysis.

Constructive Criticism and Advice:

Buffer should focus on:

• Expanding their market vision with a clearer articulation of competitive advantage and differentiation.

• Providing a more direct and compelling narrative around their product's uniqueness and necessity.

• Enhancing financial projections with concrete, attainable goals and a lucid path to increase revenue.

• Showcasing the founders' combined technical competency or strategy for technical development.

• Identifying clear operational milestones and efficiency tactics.

Final Thoughts:

Buffer has the potential to be a compelling product in the social media management space with attention to a scalable business model and a defined competitive strategy. The founders should exploit their user-oriented approach and instill confidence in YC by resolving concerns around technical acumen, financial projections, and a more expansive market strategy. Incorporating these elements into their narrative would greatly improve Buffer's chance of acceptance.

Its not over

Although Buffer was rejected it didnt mean the end of the road for them Entrepreneurs Joel and Leo created Buffer to simplify social media management, they gained an investment of $120,000 from AngelPad, another accelerator.

Buffer shows solid growth and continues to adapt to changing social media trends. Despite a sea of competitors, its focus on user needs, actionable insights and innovative features distinguish Buffer.

After years of focused development and strategy, Buffer is now a leading social media management software. It serves thousands of users worldwide, from small businesses to individual creators.

Buffer's story is an encouraging reminder that rejection can fuel determination. Startups can transform setbacks into opportunities by staying true to their mission, demonstrating resilience and focusing on value creation for users.

Buffer represents an example for new entrepreneurs and startups, illustrating the potential of resilience, user-centric innovation and the ability to turn early challenges into future success.