Y Combinator: Demo Day
Last week I attended the Y Combinator Summer Session where 105 companies pitched for investment after 6 months spent working at Y Combinator (ycombinator.com).
Y Combinator is the main incubator in Silicon Valley. Airbnb, Dropbox and Stripe are some of the biggest Y success of the last few years.
If Y Combinator companies are somehow an indicator of the next Silicon Valley trends some interesting lessons could be learnt.
Strong focus on AI and Machine Learning to diagnose in advance and prevent terrible disease as Alzheimer and Cancer;
Machine learning will provide personalize cancer cure (today the cure is just an educated guess by a Doctor);
Proven Western business models are being replicated in Emerging Economies (mainly India and Brazil):
Marketplace for personal Loans;
Marketplace for sharing economies (rental of motorbikes or car);
Recruitment and Insurance sectors are still inefficient on both side (companies and consumers) and several start up are trying to disrupt them;
New Capital is shifting from autonomous vehicles to autonomous planes;
Convertible Debt and SAFE (Safe Alternative to Equity) are now the major vehicles for start-up financing.
Big absents from the Pitches:
No robot or bitcoin business;
No Food Delivery apps;
No ecommerce or subscription services business;
No content business.
Some interesting statistics learnt:
In India, there 500 million people with skin problems and just 8,000 dermatologists;
Muslim spend $8.0b for dating (online and offline industry);
98% of the founders presenting wore a t-shirt;
Women represented less than 20% of the founders (big problem).