The Transform Technology Summits start October 13th with Low-Code/No Code: Enabling Enterprise Agility. Register now!
Silicon Valley’s Y Combinator wields a powerful influence over the startup world. But president Sam Altman is apparently a bit worried there might be too much hype surrounding the accelerator program’s graduates.
In a recent interview with Rachel Vanier of Paris’ Station F Startup Campus, Altman cautioned that not all startups coming out of the famed program are necessarily worthy of or ready for funding. When asked by Vanier about Y Combinator’s famed Demo Day event and who gets funded, he replied:
“Not all of them, but certainly a lot do. In fact, probably too many. I think there’s sort of this halo around being a Y Combinator company, where companies raise money that perhaps shouldn’t.”
Each Demo Day has become a major event in the Silicon Valley calendar, drawing many of the biggest names in venture capital. Given Y Combinator’s track record and impact, there’s no doubt a willingness to back companies that pass through its doors, following the footsteps of unicorns like Dropbox, Airbnb, and Stripe.
Officially, Y Combinator says it has funded 1,464 startups and that its alumni are worth a collective $80 billion. But investors and entrepreneurs alike shouldn’t be blinded by that success and assume graduation day is the right time for a company to raise money.
“It’s a real commitment to raise money,” Altman said. “And you want to have some evidence that what you’re doing is going to work before you lock yourself into that path.”
VentureBeatVentureBeat's mission is to be a digital town square for technical decision-makers to gain knowledge about transformative technology and transact. Our site delivers essential information on data technologies and strategies to guide you as you lead your organizations. We invite you to become a member of our community, to access:
- up-to-date information on the subjects of interest to you
- our newsletters
- gated thought-leader content and discounted access to our prized events, such as Transform 2021: Learn More
- networking features, and more