Paul Graham founder of YC, says that YC grew too fast and more things than usual broke, they increased from 66 to 84. They have produced more than 80 companies. When they select their next profits, they are paying more attention to what can become failures as well. Graham wrote ” It’s good for startups to get some amount of investment automatically; it lets them continue working on ideas that still look like ugly ducklings on Demo Day. But $150k was more than the successful startups needed, and it sometimes caused messy disputes in the unsuccessful ones.”
This news comes just a few days after Y Combinator founder Paul Graham announced that the accelerator would cut down investments in each company by half. Under the new fund, YC VC, YC will only invest $80,000 in each startup instead of $150,000.