Over the past year at the Atlanta Tech Village, I know of at least three top notch startups that applied to Y Combinator, got interviews, and didn’t get accepted. That’s not to say these startups aren’t going to be successful. Rather, the bar is so high, and there are so many applicants, the chance of any startup getting accepted is incredibly small. But, still, there were 120 amazing startups in the most recent Y Combinator class, and there are two classes per year.
An entrepreneur-turned-investor described Y Combinator’s ability to attract entrepreneurs from around the world as asset stripping talent from other regions. Here are a few thoughts on YC attracting amazing talent:
- With a three month program, entrepreneurs from other cities, that might not want to move to California permanently, have a chance to try before they buy, making it much easier to see oneself staying there indefinitely
- YC’s alumni network, from what I’ve heard from friends that have gone through the program, is powerful and valuable, such that the instant credibility and access to people is a major benefit for an entrepreneur moving to the Bay Area
- Valuations and the size of seed rounds for YC companies are considerably higher than the market average, making access to the program even more valuable, and more desirable, as a draw for talented entrepreneurs to move from a different region
The ability to attract incredible talent at scale is one of biggest reasons why Silicon Valley will continue to thrive, and Y Combinator is a serious contributor to that net import of talent.
What else? What are some more thoughts on YC asset stripping entrepreneurial talent from other regions?