When I think Y Combinator, I think a couple of scrappy college dropout co-founders for whom living on ramen is more than proverbial and coding is life. They pitch an idea, come out to California, drink in some startupy goodness and maybe make something of it.
But that incubator model, now five years old and widely replicated, is changing. At today’s Demo Day, Y Combinator’s “here’s what I did with my three months” set of presentations given to a group mainly composed of angel investors, a quarter of the 26 participating companies already had funding in the bank in addition to what Y Combinator gave them, said co-founder Jessica Livingston.
Others in the group have funding committed in the form of term sheets, to the point where some were turning away investors. One, Cardpool, which Om recently profiled, declined to give out growth stats out of a stated concern that they would be too impressive and encourage competition. “We’re just about to close our round and we’re massively oversubscribed,” said the company’s presenter.