Y Combinator held its annual demo day in San Francisco, where early-stage startups pitched to investors.

Around 80% of the companies focused on AI, with others highlighting robotics and semiconductors.

YC CEO Garry Tan said AI adoption has fueled rapid growth, with startups in this batch growing at an aggregate rate of 10% weekly. “That’s never happened before in early-stage venture,” he said.

AI-driven automation has enabled small teams to reach significant milestones, with some generating up to US$10 million in revenue with fewer than ten employees.

For about 25% of these startups, 95% of their code was AI-generated, helping them save resources.

This year’s demo day emphasized startups with commercial traction. Investors were encouraged to verify claims by reaching out to actual customers, signaling a shift from past practices.

Founded in 2005, Y Combinator has backed over 5,300 startups, including Airbnb and Dropbox, with a combined valuation of over US$800 billion. Despite growing competition, YC’s strong network and adaptability remain key advantages.

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