VC wells drying up: Y Combinator's latest class shrinks 40%

Venture capital is the latest to feel the pinch from the economic downturn, with venerable Silicon Valley incubator Y Combinator's Summer 2022 cohort consisting of less than 250 companies, down from over 400 last Winter's list - a drop of 40 percent. Lindsay Amos, Y Combinator's communications director, confirmed to The …

[Anonymous Coward]

But is this a downturn?

Or is it the end of Western hegemony?

After all, the last downturn did not see the Russians running out of patience, the Americans needlessly provoking the continental Chinese (regardless of how wrong Beijing is on the Taiwan issue), the Indians going their own way (as do the UAE), or Germany running out of gas.

I have the feeling this is quite a bit more than just the latest downturn.

[iced.lemonade]

back to rationality

it's just a more rational approach to giving money to startups... in good economical climate you can be a bit more optimistic but now, when everyone is tightening their belt the valuation of the startups naturally falls as the potential revenue falls across the whole landscape and each dollar is given out with considerably more justification.