News for hackers. Stuff that matters.

A comment on Y Combinator narrows current cohort size by 40%, citing downturn and funding. Parent comment

Re:Y Combinator narrows current cohort size by 40%, citing d... by yunohn on Wednesday August 03, 2022 @06:55AM (#32330041)
Sure, but we’re talking about a VC fund. I’m not convinced that YC reduces investing in startups to pivot and profit from increased lending rates.
[ Parent | on HN ]
Re:Y Combinator narrows current cohort size by 40%, citing d... by q-big on Wednesday August 03, 2022 @07:07AM (#32330124)
A VC fund will only get money if the risk-adjusted rate of return is greater than the rate of interest; otherwise backers of the VC fund invest their money elsewhere.

This means that VC have to become more selective with respect to the startups that they invest in, as I described.

[ Parent | on HN ]
Re:Y Combinator narrows current cohort size by 40%, citing d... by Spooky23 on Wednesday August 03, 2022 @09:04AM (#32331159)
YC is qualifying and preparing startups for VC. If the funnel is narrowing at the end, it doesn’t make sense to put more companies into it.
[ Parent | on HN ]