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Is YC turning into a kind of fight club?

 2 years ago
source link: https://finance.yahoo.com/news/yc-turning-kind-fight-club-194354023.html
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Is YC turning into a kind of fight club?

Natasha Mascarenhas, Alex Wilhelm, Amanda Silberling, Connie Loizos, Christine Hall and Tage Kene-Okafor
Wed, March 30, 2022, 4:43 AM·6 min read

Since inception, Y Combinator has invested in thousands of startups, and more recently, even hundreds within a single batch. Given the accelerator’s growth, competitive tensions feel nearly inevitable.

Still, one has to wonder if there is a fundamental shift afoot. Whereas YC always backed companies that might at some point overlap, the outfit appeared to casting its net far and wide, bringing in different startups at different stages from different geographies — companies that used each other’s products and formed tight bonds through YC’s active alumni network.

Now, however, YC seems to be actively leaning into startups that are roughly the same age, operating in the same countries and targeting exactly the same opportunity with nearly identical business models. Indeed, while similar types of companies within a class had grown inescapable as YC’s class sizes have ballooned, a kind of sameness is more apparent than ever with it latest batch of 400 startups. In fact, it's beginning to look like the plan here is to back as many nascent rival teams as possible — then let them duke it out.

Perhaps unsurprisingly, Y Combinator sees things differently. At least, asked about the many startups that would seem to compete from the outset, a spokeswoman for YC writes in an email: "These companies are not in the same groups and do not interact. Also, it is common for startups to pivot during the batch."

In the meantime, we’ve rounded up some of the startups that seem to us to overlap — a lot — within its Winter 2022 batch.

TradeX and Better Opinions

Founded in the same year and same location, TradeX and Better Opinions have the same goal: give people a way to bet — and win — money on their predictions. The startups are building platforms where people can trade money while betting on whether or not an outcome will happen, from a movie launch to who the next president will be. There are more serious future events to bet on as well, such as climate change, inflation and whether omicron cases will rise or fall in a particular location.


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