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🌀Y combinator: Shaping the marketplace world, one seed at a time

Y Combinator, affectionately known as YC, occupies an indomitable position within the realm of startup incubation and acceleration. Conceived by a group of visionaries, this organization has played an instrumental role in sculpting the destinies of countless entrepreneurial ventures.

Beyond the financial commitment, YC's participants gain access to an arsenal of invaluable resources and mentorship. These resources are designed to streamline the labyrinthine complexities that often beset early-stage businesses, ranging from the intricacies of legal processes, such as incorporation and trademarking, to the pivotal task of forging connections with the most suitable investors.

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There are thousands of smart people who could start companies and don’t, and with a relatively small amount of force applied at just the right place, we can spring on the world a stream of new startups that might otherwise not have existed

Paul Graham, co-founder of Y Combinator

Twice a year, Y Combinator extends its support by investing a modest sum of $125,000 in a multitude of promising startups. Over the ensuing three months, an intense collaboration ensues as YC works tirelessly with these companies to hone their strategies, refine their pitches, and bring them to the pinnacle of their potential. This dedicated effort culminates in the grand spectacle known as Demo Day, where these startups unveil their innovations to a discerning, invite-only audience of potential investors.

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Sometimes people think Y Combinator has big ideas about themes. But really, we just fund the best startups

Sam Altman, Chairman of YC

However, Y Combinator's commitment extends far beyond the confines of Demo Day. The organization, along with its extensive alumni network, remains steadfast in its support, offering guidance and assistance throughout the life cycle of each company and even beyond.

Y Combinator stands as a beacon of success among incubators worldwide, boasting an unparalleled network of influential mentors and alumni. Renowned companies like Reddit, Dropbox, Airbnb, and Quora have not only emerged from its nurturing environment but also contributed to the strengthening of Y Combinator's alumni ecosystem.

Y Combinator has cemented its status as the accelerator of choice for visionary founders. According to PitchBook analysis, an impressive 4.5% of startups accelerated by Y Combinator since 2010 have evolved into billion-dollar enterprises - outperforming other prominent accelerators like Techstars and 500 Global.

In the years spanning 2010 to 2015, this unicorn creation rate surged to an even higher 5.4%, exemplifying the unparalleled success Y Combinator has achieved. Notably, the accelerator has outshone its competitors in terms of cumulative capital raised, amassing a staggering $80.9 billion from its 2010 to 2022 cohorts. This remarkable achievement has been propelled by a substantial proportion of unicorn companies, reinforcing Y Combinator's supremacy in the startup realm.

In the spectrum of Y Combinator's portfolio, marketplaces emerge as a dominant force. Among the top 100 companies by value, a notable 14% belong to the marketplace category, reflecting the accelerator's profound impact.

Among TOP10 this share is even higher! 50% of TOP10 companies by value are marketplaces and those are Airbnb, Instacart, DoorDash, Opensea and Faire. Those prominent marketplaces are reshaping their industries.

Since 2019, Y Combinator has accelerated over 150 marketplaces, effectively doubling its count since its inception in 2005. With an impressive total of 317 marketplaces accelerated to date, Y Combinator has effectively transformed commerce landscapes.

Among these, 103 are B2B-focused, while 268 cater to the B2C market, demonstrating the accelerator's versatile approach. The success story continues as Y Combinator's influence has propelled 2 marketplace companies—Airbnb and DoorDash—into the public domain. Additionally, 28 acquisitions and 241 active marketplaces underline the vibrant ecosystem fostered by Y Combinator, with only 46 becoming inactive over time.

This year has been an exciting year for Y Combinator, with a diverse group of 21 innovative marketplaces making remarkable strides. Among these, we've witnessed the emergence of 7 impressive B2B platforms and 14 B2C ventures. Here is subjective top5 from the cohort

  • Certainly Health: A healthcare marketplace that allows patients to book doctors while ensuring transparent, predictable out-of-pocket costs by using machine learning. It also guarantees that health providers receive timely payments.

  • Airgoods: A wholesale marketplace catering to specialty food and beverage stores, connecting them with their next best-selling products. Airgoods simplifies inventory purchasing by offering a wide selection of non-alcoholic and functional beverages from over 1,400 products, including top brands.

  • Proglix: A B2B marketplace in Indonesia specializing in raw materials for small and medium manufacturers. Proglix offers a seamless platform for purchasing steel and electrical supplies, providing cost savings, faster delivery, and real-time inventory stock updates with no minimum order quantities.

  • Peeba: A risk-free B2B wholesale marketplace serving retailers across Southeast Asia. Peeba streamlines the buying process for independent retailers, enabling them to purchase top-selling products from unique brands for their stores.

  • Sanvivo: The "Shopify for pharmacies" in Europe, Sanvivo facilitates online medication orders, pharmaceutical advice, and health service bookings at local pharmacies. It empowers pharmacies with software for managing online orders, including e-prescriptions, while integrating with third-party delivery services to meet regulatory requirements and enhance their digital capabilities.

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Author

Artur Stańczuk is a Chief Strategy Officer at Packhelp, the leading European packaging marketplace. Previously worked ~8 years at Bain & Co. In the past, Digital Transformation Director at the leading Polish convenience chain Żabka and Entrepreneur that co-launched 3 start-ups

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