After being forced to quickly shift strategies and stage a remote demonstration day last month following the break out of COVID-19 stateside, Y Combinator announced today that they will officially be completely moving their next batch to a remote format. In a post today on Y Combinator’s website, YC CEO Michael Seibel announced the relocation.”We have chosen to run the S20 batch remotely, since in the middle of the COVID-19 crises, the security of creators and YC staff is our leading concern.”
The Summer 2020 group of creators will operate fully online with interviews, workplace hours, night talks and meetups taking place over video conferencing. This might assumedly reach the group’s demo day also, though that was not clearly mentioned. Y Combinator had actually given start-ups in the most current class the choice to delay an onstage launch till a later Demonstration Day; it seems that those YC startups may not get that option for 2020.
As YC shifts online, concerns make sure to only grow on whether founders are still getting a good deal from the accelerator in the midst of a crisis.
Founders signing up with the program give up a 7% piece of their business in exchange for $150K and, more significantly, access to YC’s network and group of advisors.
Y Combinator has already been scaling quickly with larger class sizes, and this move will require the company to include an extreme format modification to the mix. Accelerator batches have actually ballooned in size in the last few years, tapping out at 240 startups in this latest class.
To represent these bigger groups, YC has had to explore major format modifications in how start-ups are grouped internally and how they provide to investors. Losing their Demo Day last session indicated founders lost easy access to in-person intros with the big group of VCs that typically flock to the event.
Recently, TechCrunch reported that YC was changing the terms of its professional rata investment program and would be investing in startups on a case-by-case basis, moving their years-old policy of buying every business’s seed and Series A rounds.
Article curated by RJ Shara from Source. RJ Shara is a Bay Area Radio Host (Radio Jockey) who talks about the startup ecosystem – entrepreneurs, investments, policies and more on her show The Silicon Dreams. The show streams on Radio Zindagi 1170AM on Mondays from 3.30 PM to 4 PM.