Y Combinator Shifts Focus to Early-Stage Investments and Cuts Staff Amid Tech Reckoning

Y Combinator, a renowned startup accelerator, has announced a scaleback in late-stage investments, resulting in the layoffs of 20% of its staff.

Y Combinator shifts focus to early stage investment

Y Combinator, the prominent startup accelerator, has announced that it will be reducing its growth-stage investments and cutting 20% of its staff, which amounts to around 17 employees. 

According to Y Combinator, this decision was made as late-stage investing was becoming a distraction from its core mission, which is to focus on early-stage investing. It's worth noting that the accelerator has clarified that the layoffs were not related to the recent Silicon Valley Bank (SVB) failure, despite over 30% of Y Combinator’s startups being exposed to SVB. 

However, YC CEO Garry Tan had cautioned YC companies to be mindful of the banking crisis, advising them to not expose themselves to more than $250,000 of exposure this year. This news comes at a time when the tech industry is experiencing a reckoning, with many startups feeling the heat of the SVB crisis. 

Tan himself has been vocal about the issue and recently penned a petition calling on Congress to support the entrepreneurial community. It remains to be seen how Y Combinator will navigate the tough road ahead, especially with its biannual Demo Day coming up in a few short weeks.

Manish <span>Content Strategist</span>
Written By
Manish Content Strategist

With a mixture of literature, cinema, and photography, Manish is mostly traveling. When he is not, he is probably writing another tech news for you!

Want To Hire The Best Service Provider?
MobileAppDaily will help you explore the best service providers depending on your vision, budget, project requirements and industry. Get in touch and create a list of best-suited companies for your needs.

The Upcoming iOS 11 Launch To Kill 1,87,000 Apps In The App Store

4 min read  

Apple is all set to release its next iOS update and the upcoming change is sure to have an impact on nearly 1,87,000 applications. The upcoming update of iOS 11, ready to go live next month will cater to an increased efficiency. Tech experts have claimed that old school apps will have a major dishev


Apple Maps Is Getting A Complete Overhaul With New Features

4 min read  

Just a couple of days before, Google Maps were updated with new features and design transformations. And now on the same lines, Apple has started working to infuse new elements in its Map app. Though Apple Maps do lack a lot of features that you can easily get in its rival app but with the addition


Apple Announces Its "Today At Apple" Session With Wu-Tang Clan's RZA

4 min read  

Today at Apple, the educational program that the company launched last year will be having Wu-Tang Clan frontman RZA for its upcoming session. The company announced that it will be organizing a ‘Music Lab’ session for the music enthusiasts at its Union Square location in San Francisco. T


Everything You Want To Know About New Android Oreo Update

4 min read  

In August 2017, Google released Android 8.0 Oreo mobile operating system. Few of the devices have got the update and others will follow soon. Though the recent Android phones will not find it hard to embrace the new update, but the older ones may have some trouble. In the end, it all depends on smar

MAD Originals
MAD Originals

Cut to the chase content that’s credible, insightful & actionable.

Get the latest mashup of the App Industry Exclusively Inboxed

  • BOTH
Join our expansive network, build connections and expand your brand presence.