Startup general interestVenture Capital

Y Combinator’s latest class – business/consumer split is pretty even

By March 23, 2011 3 Comments

image Yesterday was Demo Day for Y Combinator‘s latest crop of startups and All Things Digital has a brief description of 24 of the 43 presenting companies.  Apparently 19 of the presentations were ‘off the record’ and were not included.  Additionally, one company didn’t present because it was already under termsheet for a Series A investment and hence prohibited from pitching to investors.

These are now some of the hottest startups on the planet.  All have been through the Y-Combinator selection process and then programme and many will now be chased down by some of the US’s best VCs.  Additionally, all have been offered a $150k convertible loan by DST/Ron Conway.

So I thought it would be interesting to see which sectors the smart money is looking at.  This isn’t a full snapshot of the market, as it reflects Y Combinator’s focus on both capital efficiency and internet related businesses, but I think it provides some guide as to which sectors are likely to be hot for the next year or two.

And the answer it that the split between consumer and business focus is pretty even.  Ten of the twenty four are clear consumer plays, five are productivity tools that target individuals in the workplace and hence straddle the consumer/business boundary, and nine are clearly targeted for sale to the enterprise (software tools and enterprise software).

I haven’t looked back at previous classes, but I think they were much more heavily consumer focused.

And the picture is of Jof Arnold of Fitfu presenting at Demo Day yesterday.  Fitfu is one of the British teams in this year’s class (maybe the only one?).  I’ve been a long time user of his excellent personal fitness apps on my iPhone.

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