That 40% is removal of Russian investment capital following financial restrictions due to Ukraine war.
Any source for that?
Y Combinator narrows current cohort size by 40%, citing downturn and funding
91–100 of 184 posts
Re: Y Combinator narrows current cohort size by 40%, citing downturn and funding
#92I always find it amazing that applicants only have 10 minutes to present themselves. If I only had 10 minutes, I'd be nervous as hell and it would not give a true representation as me as a person and my project - unless the nervousness factor is a key decision factor as well.
> If I only had 10 minutes, I'd be nervous as hell and it would not give a true representation as me as a person and my project
How do you sell your product to customers if you aren't able to pitch it in ten minutes?
Re: Y Combinator narrows current cohort size by 40%, citing downturn and funding
#93If you think this is a bad sign, just wait til we're in a recession.
You can stop waiting.
Re: Y Combinator narrows current cohort size by 40%, citing downturn and funding
#94The emphasis on "downturn" concerns me. Aren't reputed firms like YC supposed to look at a 10+ year horizon? If this is true, it indicates that earlier investments were based on the market than the fundamentals of the founding team, market, and product.
That's the feeling i get too, they are more preoccupied by short term gains rather than long term commitment
Wich usually mean they do not trust the products they are funding
Not looking good
Re: Y Combinator narrows current cohort size by 40%, citing downturn and funding
#95I always find it amazing that applicants only have 10 minutes to present themselves. If I only had 10 minutes, I'd be nervous as hell and it would not give a true representation as me as a person and my project - unless the nervousness factor is a key decision factor as well.
> If I only had 10 minutes, I'd be nervous as hell and it would not give a true representation as me as a person and my project How do you sell your product to customers if you aren't able to pitch it in ten minutes?
True, I guess I'm just not made for being a founder.
Re: Y Combinator narrows current cohort size by 40%, citing downturn and funding
#96Earlier quoted context omitted.
No, it’s still 125k for 7%, with an option for an additional 375k on an uncapped safe. Source: https://www.ycombinator.com/deal/
If you ever finance again you have to take the note, right?
That’s actually a good question, the language isn’t clear on whether the 325k note is mandatory or not.
Re: Y Combinator narrows current cohort size by 40%, citing downturn and funding
#97Earlier quoted context omitted.
Are VCs funded by debt? I thought the funds would largely have come from existing cash or equities and were only down 15% from ATH on SPY. Is this just people being risk averse right now?
VCs aren't directly funded by debt. They generally receive funding from accredited investors, and accredited investors are as a rule wealthy. Now when you are wealthy you make money off your money (through traditional means stocks/derivatives/etc...) but you want to get even more wealthy and have access to special discounted loan rates through things like guaranteed loans. So you go to the bank and say here's some of…
Well, in that case, everything is indirectly funded by debt
Re: Y Combinator narrows current cohort size by 40%, citing downturn and funding
#98Earlier quoted context omitted.
The fact that they cite the current market means that at some point in their process they borrow money. And now that’s more expensive to do. That doesn’t mean necessarily that they are “funded by debt”. It could just mean that getting into some temporary debt is part of how they work.
> at some point in their process they borrow money I would be somewhat careful with such claims. As an investor who has money available, you have two options (in this example) where none involve borrowing money: a) invest in some startups b) lend this money to other entities Increased market interest rates mean that b) becomes more attractive. In other words: the startups that you invest in for a) have to be much mor…
Sure, but we’re talking about a VC fund. I’m not convinced that YC reduces investing in startups to pivot and profit from increased lending rates.
Re: Y Combinator narrows current cohort size by 40%, citing downturn and funding
#99If you think this is a bad sign, just wait til we're in a recession.
It's signs like these that cause a recession. A lot of recession (and growth) is about belief in the economy. If YCombinator tells everyone there will be a tech recession, it increases odds of a recession.
+1, “are we manifesting a recession”:
https://kyla.substack.com/p/the-vibecession-the-self-fulfill...
Re: Y Combinator narrows current cohort size by 40%, citing downturn and funding
#100Reduce size and repeat members from previous years. I feel bad for the new applicants.