Y Combinator has reduced late-stage funding, intensifying the challenges faced by the start-up world.
2
Job cuts
Y Combinator has also decided to fire 17 employees or 30% of its workforce. Axed employees were part of the accelerator's late-stage investing team.
3
Focus on early-stage investing
According to CEO Garry Tan, Y Combinator found late-stage funding to be a distraction from its core mission of early-stage investing.
4
Silicon Valley Bank's collapse
YC's decision cannot be seen in isolation as Silicon Valley Bank, which serves 30% of YC-backed start-ups, is facing difficulties.
5
Funding winter persists
VC firms are still hesitant to fund startups as the start-up funding winter persists, with late-stage funding down by 60% YoY globally and 88% in India.