The value YC sells for $120k and 7% (the standard YC deal) is “exposure”. It’s been YC’s justification for this staggeringly expensive proposition for over a decade. Having more companies in the cohort, means less exposure, and thus even less upside.

It’s a market. YC isn’t the only accelerator out there, and if the proposition is returning less than before, then the correct solution is to not accept the YC deal.

Startups get a better experience, and Sam Altman learns the lesson about overextending. Eventually, the market will correct.

cue the problem solved song