Where the Valley's hottest incubator nests its companies

A new report shows that most companies developed at Y Combinator, the much-watched Silicon Valley incubator known for both the geeky prowess of the startups it grooms and the Hollywood glitz of the investors it draws to its Demo Day events, launched on the cheap. The Y Combinator graduates, including much-discussed stars like travel site Hipmunk and online-storage service Dropbox showed a strong preference for cost-saving cloud-computing services for storage and processing and Web-based software like Google’s Gmail for internal communication.