When Y Combinator consider Venture Capital, they are talking about providing the advice, connections, investment and everything needed to turn great ideas into viable businesses as risk mitigation for the equity they hold.
Y Combinator has funded some of the largest companies in tech, including AirBNB, Reddit and Dropbox, yet despite this and testament to it’s success, it’s monetary funding it relatively low. Since 2014 YC look at investing just $120k in up to 80 different start ups before moving them, whole kit and caboodle, to Silicon Valley where they undergo an intensive three month packaging where they are able to refine pitches to investors.
TechCrunch produced this video below which runs through how awesome Y Combinator really are and for me, the most notable thing of value for YC comes in the Alumni.
For nearly ten years, companies that have gone through the programme and tackled problems across business and technology are the advisers to the new set of freshers engaging in the programme, which makes Y Combinator the most sought after catalyst for entrepreneurs in the industry.
Some of the more recent success stories from Y Combinator include VetPronto, a company which brings the vet to the house, solving the problem of putting animals through the stress of hospital visits and GrubMarket which brings fresh food to your door from cooked and baked meals, to fresh produce straight from the field.
Exactly the type of startups which have seen Y Combinator’s investments grow to more than $30bn!