YC is CRISPR for Startups

Last week, we launched our Summer 2021 batch here at Y Combinator, the 33rd batch since our founding in 2005. We are now funding hundreds of companies each…

Brex: The Future of Business Banking and Cash Management

When Henrique Dubugras and Pedro Franceschi joined the YC W17 batch with an idea for a VR startup, they quickly encountered a problem. They had applied for a…

Convoy: The Future of Truck Freight

Online marketplaces bring efficiency to traditional sectors. They offer a better user experience and increase margins for participants. They can accrue huge value by reducing friction and aggregating…

2020 — Year in Review

In early 2020 the entire world underwent a transformation. The planet was consumed by a pandemic that altered life as we knew it. Most of our normal routines…

Reimagining B2B Commerce with Faire

We believe that new and upcoming B2B players now have the tools to overcome historical constraints, and that large B2B commerce aggregators will emerge over the next decade. At YC, we often look to Faire (YC W17) as a prime example of B2B aggregators that will emerge over the next few years. In this post, we’ll walk through Faire’s opportunity as a B2B marketplace for independent retailers and brands, and discuss what its success means for the future of B2B commerce companies.

Pinduoduo and The Rise of Social E-Commerce

Across the globe, as the novel coronavirus moves us from communal spaces into the confinement of our homes, our social experiences are forced to adapt. Beyond the social networks we already know and use, we are finding new ways to integrate social into our online lives. At Y Combinator, we are considering what this might mean for the future of e-commerce. For several years, we have had our eye on Pinduoduo as an interesting case study. But now, as China is recovering from the impact of COVID-19, Pinduoduo and their social-shopping approach is even better poised to fully capture the offline-to-online transition in commerce. The success of Pinduoduo in China suggests there is a huge opportunity for social commerce platforms to emerge in other regions.

The Cost of Preemptive Deals

We looked at 120 US Series A rounds from our portfolio over the past 18 months to see whether or not preemptive offers were generally more or less dilutive than process driven rounds. On average, founders taking preemptive offers are taking ~1.4% more dilution for less money.

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