Startup accelerator Y Combinator has reduced the size of its Summer 2022 cohort by 40%, TechCrunch reported. The ongoing batch sees participation from only 250 startups, down from 414 companies in its Winter 2022 cohort.
According to Lindsay Amos, director of communications at Y Combinator, the resizing was “intentional,” attributing the decision to worsening economic conditions and the changing funding environment.
In May, the accelerator sent out a list of advice to its portfolio founders, stating that “the safe move is to plan for the worst.” It added that if the situation turns out as bad as the previous economic downturns, the best choice is to get to “default alive.”
Amos told TechCrunch that the program will determine the next cohort size by evaluating all aspects of the batch as well as the environment in which the startups operate in.
Established in 2005, Y Combinator has funded more than 3,000 startups with a combined market valuation of over US$600 billion. Of these investments, 60 firms have gone on to become unicorns. The accelerator’s program runs twice a year and offers companies a standard investment of US$500,000 each.
See also: Recession Run: Sequoia’s $850m plan during a downturn
Editing by Miguel Cordon and Lorenzo Kyle Subido
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