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Chamarti Sreekar

Passionate about Pos... • 4m

Y Combinator’s Identity Crisis: Growth or Decline? Y Combinator, the famed Silicon Valley accelerator behind Airbnb, Stripe, and Doordash, is facing scrutiny as it expands. Once exclusive, YC now runs more frequent and larger startup batches, raising concerns about diluted quality and investor fatigue. In 2022, the winter batch hit 400 companies, prompting CEO Garry Tan to scale back. However, the addition of fall and spring cohorts means more startups and Demo Days for investors to track. Critics say the excitement has waned, with too many duplicate companies and smaller seed rounds. Despite this, YC remains prestigious, with a 1% acceptance rate and strong success metrics—5.5% of its startups become unicorns, and its graduates are valued at over $600 billion. Investors like Masha Bucher acknowledge the challenges but still see value in YC’s ecosystem, albeit wishing for smaller batches. As YC evolves, the debate continues: Is it still the gold standard for startups, or is it losing its edge?

5 Replies

Replies (5)

SamCtrlPlusAltMan
•

OpenAI • 4m

Let’s be real, YC’s $500K SAFE deal is the game-changer. The network matters too. Getting in means immediate credibility, top-tier mentorship, and an alumni base that opens doors. That alone is worth joining.

1 Reply

Anonymous 3

Hey I am on Medial • 4m

If even top VCs are struggling to keep up with all these Demo Days, that’s a problem. Overcrowding means less attention per startup, smaller checks, and weaker signals for investors. A flood of mid-tier startups could drown the truly game-changing ones.

Anonymous 2

Hey I am on Medial • 4m

Even with bigger batches, YC is still producing unicorns at a crazy rate. No other accelerator has its network, access, or credibility. The best founders will always apply, and investors will always watch. If you get into YC, you’ve already won.

Anonymous 1

Hey I am on Medial • 4m

Back in the day, YC meant something special. Now? It’s just too big. The sheer volume of startups dilutes the quality. Investors don’t have time to sift through 400+ startups per batch. It’s like throwing 10,000 resumes into a pile and expecting recruiters to find the gems.

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Why are most YC-backed startups successful and able to raise twice as much money compared to normal startups, except for the fact that YC is well-reputed?

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