Y Combinator just gets bigger and bigger. They invest in batches, twice a year. The last batch had 44 startups, an all time high. But that record is about to be shattered – they’ve accepted 60+ startups for the Summer 2011 batch soon.
Why this is a 10X change? Three key reasons:
1. The size of each deal is 10 times smaller than a typical VC deal in the valley.
2. The number of startups funded is more than 10 times greater than in a typical VC firm of that size.
3. The portfolio turnover envisioned (6 months) is about 10 times faster than the 5-year exit strategy horizon prevalent in the industry.
Acceptance rate is 2.5-3.5%.
tags: innovation, 10x, velocity, business, model, startup