FACT: 91% of YC companies presenting at S23 are in fact raising money at Demo Day. Warning: VC's are lying about YC and YC Demo Day, and TechCrunch isn't even doing the courtesy of fact-checking these lies with us so we can set the record straight.
So like I have been thinking of doing the YC route.. The thing is for a person who spends a lot of time alone, the whole group activity part of the process is terrifying to me.
91% raising money from new investors isn't really the right metric. A better metric would be what percent of their targeted raise are they expecting to close from investors at Demo Day? If you are adding strategic Angel and small follow on checks to a round that is basically subscribed, is the story wrong? I'm not saying that's the case, but that is what the story said and the 91% fact doesn't really address it.
Good luck to all the YC companies today! If you're a founder reading this and wondering what other companies are raising at, a bit of Carta data from the last 60 days may be helpful
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I would also add for the founders who have raised ahead of DD, the lead may be locked in but there's still room for operator angels and smaller funds.
Well, it might just be the opinion of an investor, but yes, it's the responsibility of TechCrunch sold as serious journalism to fact check. This can jeopardize Y Combinator's reputation that was so hard to create, and even Garry Tan's one, who is an excellent startup leader and has contributed immensely to founders all over the world. Come on TechCrunch, we still trust you, don't let us down.
Garry Tan what does the mean for pitch events where you are required to pay for entry? Most pitch competitions and demo days I see require this and pitch that a lot of money is raised through conversations during the demo day. I have been wondering for a while if these events are largely a waste of time for entrepreneurs
The stats speak for themselves. Keep churning out unicorns
Founder / CEO at True Link Financial
8moI think being hated on by VCs is validation of an efficient marketplace. For those whose business model is finding great companies, developing conviction, and helping as much as possible, YC demo day is the best in history. If your business model is knowledge asymmetry and lack of access, you are going to send made up quotes to techcrunch about how none of the companies will take your money. This is the single room with the greatest number of people raising money in history and you can't sell your money! Look in the mirror!!!