Re:Y Combinator often backs startups that duplicate other YC...
by dehrmann on Tuesday November 26, 2024 @02:49PM
(#42249276)
They're really just keeping multiple irons in the fire. If the space is a winner, another player increases YC's chance of betting on the winner. More players also means the space gets explored in different ways.
Re:Y Combinator often backs startups that duplicate other YC...
by frigidnonce on Tuesday November 26, 2024 @06:13PM
(#42251173)
> Last I checked, Y-Combinator is still considered a VC firm.
There was a time when pg would come out swinging and say that YC invests their own money which is very different from a VC firm.
Well, it did make YC different in the past: they took bets no one else would, which they could afford because of such a position. Is that still true? I’m not sure.
A new technology comes out. The new tech has high startup costs and low marginal costs. You invest in 10 companies developing this new tech. 8 go bankrupt, one hangs on by a thread, the last one returns 1000x on what you invested.
Last I checked, Y-Combinator is still considered a VC firm. Investing in a bunch of firms doing the same or very similar things is what YC should be doing.