Y Combinator narrows current cohort size by 40%, citing downturn and funding
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Re: Y Combinator narrows current cohort size by 40%, citing downturn and funding
#2Doesn’t Y Combinator get 7% of every business for only $125,000? How are they not flush with cash?
Re: Y Combinator narrows current cohort size by 40%, citing downturn and funding
#3Doesn’t Y Combinator get 7% of every business for only $125,000? How are they not flush with cash?
$125k * 400 companies/batch * 2 batches/year = ~$100 million/year deployed just during the batches. On top of that, they often participate in later funding rounds to maintain their 7% stake. Also, it takes a long time for those investments to generate cash. Many of the most valuable YC-funded companies are still private, and even for the public ones I doubt YC unloads its whole stake as soon as it can post-IPO.
Re: Y Combinator narrows current cohort size by 40%, citing downturn and funding
#4No post body was provided.
Re: Y Combinator narrows current cohort size by 40%, citing downturn and funding
#5Doesn’t Y Combinator get 7% of every business for only $125,000? How are they not flush with cash?
JIT economics are not just for toilet paper
Re: Y Combinator narrows current cohort size by 40%, citing downturn and funding
#6Doesn’t Y Combinator get 7% of every business for only $125,000? How are they not flush with cash?
It’s $500k now.
Re: Y Combinator narrows current cohort size by 40%, citing downturn and funding
#7It's okay, there are other VC to fill the void.
Re: Y Combinator narrows current cohort size by 40%, citing downturn and funding
#8From what I've heard from people in recent batches, this is probably a good thing for those that make it in.
Pretty little personalized attention when there are 400 startups in a batch...
Re: Y Combinator narrows current cohort size by 40%, citing downturn and funding
#9Doesn’t Y Combinator get 7% of every business for only $125,000? How are they not flush with cash?
$125k * 400 companies/batch * 2 batches/year = ~$100 million/year deployed just during the batches. On top of that, they often participate in later funding rounds to maintain their 7% stake. Also, it takes a long time for those investments to generate cash. Many of the most valuable YC-funded companies are still private, and even for the public ones I doubt YC unloads its whole stake as soon as it can post-IPO.
Isn’t there also a large risk to YC in the event their private unicorns see substantial valuation revisions?
Re: Y Combinator narrows current cohort size by 40%, citing downturn and funding
#10From what I've heard from people in recent batches, this is probably a good thing for those that make it in. Pretty little personalized attention when there are 400 startups in a batch...
It's actually a bad thing. Just like cryto all the YC companies sell to each other. As per their 2022 stats, more than 50% of sales for all YC startups are other YC companies.
So this is just a game of hot potato until they get a fat valuation, raise a zillion dollar series and then list it on the stock market for the retail traders to hold their bags.
Less YC startups= less customers for other YC startups.