Y-Combinator Statistics: 464 Startups Raise $1.5 Billion In FundingFebruary 9, 2013 2:35 am
Any discussion on YCombinator you need to consider the impact of Dropbox and AirBnB. (In this case, they have raised $257 million and $120 million respectively), we spotted today that the total funding raised by YC companies excluding the current batch, has reached $1.5 Billion. (Source)
How do we digest this stat? For scale, let us try this: in the year 2012, some 20.6 billion USDs have been raised by VC firms in the US. That clarifies the scale of the funding raised by YC companies.
Two additional points to keep in mind: the ‘just get out of YC and we will fund you with hundreds of thousands of dollars’ movement has an impact on these numbers. And obviously, the AirBnB and DropBox effect.
Reddit could have been much, much bigger from a millions and billions perspective, maybe they ended up selling early – and so they do not have a very significant impact on these numbers. We had spotted some Reddit stats in the past – Reddit is a giant on the Internet – it had more than 37 billion pageviews in 2012.
But even with such known misses, the impact of YC companies on the overall funding scenario is big. These companies have cleared two filers: the fact that they got into YC gets the ‘right team’ check taken care of, and the fact that they did YC gets the ‘make something people want’ check taken care of. The question that would remain, is if people want the product now – the famous marc andreessen point on ‘product-market fit’: the bet is that the product-market fit is not years away. That sounds like a reasonably safe bet.
But if VCs are looking for reasonably safe bets, who is looking at taking real risks? The definition of VC is changing, and we have seen the impact in numbers as well.