This tweet from YC’s Sam Altman was in my feed this morning:
another nice comment from demo day "there are more companies here with $1MM+ run rates than i see in months of startups pitching A rounds"
— Sam Altman (@sama) March 25, 2015
You can see why he’s pleased. Lots of his companies have got a $1mm revenue run rate which is a sign they are valuable.
It takes a while to get to a $1m run-rate and I’m wondering if YC is trending towards backing more mature companies and fewer true startups.
Here in the UK it seems to me that Seedcamp and Techstars have made a similar shift in strategy. It makes sense, they get similar equity positions in businesses with more proof points that are therefore more likely to be successful. On top of that the introductions these programmes can make to potential investors, customers and advisors are more valuable to companies that have product and revenues.
That leaves a gap for true startups. Which is where we play 🙂