Y COMBINATOR MATHS: HOW IT BECAME A SILICON VALLEY KINGMAKER

This brief yet profound research highlights how YC started with just $200k in capital and became the most influential early-stage investing firm in the world. It has consistently made the best investments and products in the market, including DoorDash, Stripe, Reddit, Coinbase, Zapier, Airbnb, and more.

YC's success is often debated, but key factors include good judgement, a focus on technical founders making something people want, a culture of mentorship and collaboration, standardised investing terms, and being in the right place at the right time. These elements contribute to the $600B+ value of YC-backed startups.

Founders selected are usually at a very early stage. For example, the winter 2023 batch had 52% with only an idea and 77% with zero revenue. Investing in such early-stage companies is highly risky, which is why YC diversifies its investments.

It's fascinating how different YC batches can clearly show the hype surrounding various technologies. For instance, in 2022, when Crypto/Web 3 was the hottest topic, 33 startups were focused on it; in the latest batch, there’s just one.

Now, AI is leading the charge — in the winter of 2024, 64% of the selected projects were centred around it.