Updated: Oct 16, 2022
Now anyone can invest alongside Y-Combinators 2022 class, the #1 startup accelerator in the world.
Y-Combinator is considered the undisputed leader in the startup accelerator world. They are incredibly exclusive to get into and have produced some of the best startups in the world. Some of their alumni include Airbnb, Coinbase, DoorDash, Dropbox, Instacart, Quora, Reddit, Stripe, Twitch, and several other billion-dollar companies. Since its founding in 2005, Y-Combinator has funded over 3000 companies, and the combined valuation of those companies is over $300 billion.
What is Y-Combinator?
Y-Combinator is said to have invented the startup accelerator model, and their track record for this is unparalleled. It’s simple but effective and makes a lot of sense. You apply to their program, and companies then go through a rigorous 3-month process where they hone your company's vision and pitch. After you get accepted into a batch, Y-Combinator invests $500,000 and lets you pitch in front of an exclusive group of invite-only investors to help raise more funds.
This means any company that went through and completed the Y-Combinator program they have some top investors and access to the Y-Combinator startup network for life. These are some of the highest-quality startups in the world. While Y-Combinator isn’t immune to volatility, they have an incredible track record. Out of their 3000 investments, 271 have went on to be classified as successes by Y-Combinator. So just under 10%, which is generally what most people expect when they invest in startups, and why I, and everyone else in the industry, always harps on the importance of diversification.
Anyone Can Invest in Y-Combinator’s 2022 Class
Y-Combinator has two classes per year, and only takes about 2% of all applicants. Meaning if a class size is 60 startups, over 2000 startups applied. Recent batches are some of the largest in its history, with classes being as large as 414 companies, though. Those sizes are starting to shrink rather drastically as the market pulls back and that likely directly results in less cash flow. The most recent class was 250, but when each company receives $500,000 then you’re looking at $125 million, or for their largest class, as much as nearly a quarter billion dollars.
Wefunder, while not having an official partnership with Y-combinator, has done a great job at attracting Y-combinator alumni to it’s platform. While there have been a few over the years, they recently launched a large cohort from their 2022 class that you can check out here:
While there have been a number of previous Y-Combinator Alumni on Wefunder, this has seemingly been the most cohesive and largest groups I have seen on the website. As well, it’s a fresh batch of 2022 graduates, so it’s a bit more exciting than a company that went through in 2013 or something. Currently, there are 20 new companies, and going alongside that “10%” rule, while not guaranteed, statistically, two of those companies will go on to become “successful.”