It has been revealed that the Y combinator prioritizes people over ideas. The market is more willing to back people than their farfetched dream of a startup. This year was unlike any other for a variety of reasons. YC Summer 2022 receives a $50,000 check in the second batch in place of the $125,000. Also, this year the batch size was smaller than the normal cause of the downturn.
Another significant change this year was the divide of the founders. 40% of the batch founders came from across the world and the rest were from the Bay Area. The following are some of the things that can be learned about startups from the 277 Combinator:
- The investors can be divided into two categories. The first one is where the check writers are spending money to be part of a big disruptive idea, and then looking at the people working on the project. The second group of investors is supporting a selected number of people in whatever disruptive idea that they are working on now. The trend shows more people are getting comfortable funding people who have great ideas.
- Y Combinator shows more similarities to a crypto and fintech accelerator than it does to a biotech and consumer accelerator. It is evident from the breakdown of the startups and the Demo Day format.
- Bigger swings in the batch are caused by bigger checks and the moonshots are here to stay despite the downturn.
As usual, this Y combinator was also filled with its fair share of last-minute changes, Stanford dropouts, and promise of near-term profitability.