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Y Combinator has invested in over 5000 startups with a total valuation of $600 billion. Out of these, just 4 companies—Stripe, Airbnb, Coinbase, and DoorDash accounts for ~$300 billion of the valuation. Fascinating, isn’t it?

Have you ever think why that happens?

firstly because Only 1-2 companies can rule a industry (for eg qcom) and rest of the companies will either shut down and would not grow much. secondly most of the startups introduce a new concept and only few of the concepts work while others fail.

True, This happens due to the power-law effect in venture capital—where a small number of companies generate the majority of returns. Stripe, Airbnb, Coinbase, and DoorDash are market-defining giants, driven by scalability, network effects, and perfe

Yup, btw how do you think can a fund eliminate most of the companies and just focus on those rare gems? like any quantitative ot qualitative metric you think that can help in filtering investments?

Question is good but for this i have to read and understand the systems made by y combinator for that filtration.

yeah, it's not that easy question to answer. Lemme also use first principal thinking to get a suitable answer