The first Silicon Valley stage companies are gaining an important impetus for artificial intelligence.
Startup Accelerator and Combiner: Known for the support Airbnb, Downfall and Stripe: This week he celebrated his annual demonstration day in San Francisco, where the founders launched their startups in an auditorium of possible venture capital investors.
The CEO of Y Combinator, Garry Tan, told CNBC that this group grows significantly faster than past cohorts and with real revenue. During the last nine months, the whole batch of YC companies as a whole grew by 10% a week, he said.
« It’s not just the number UO two companies: the lot is growing 10% a week a week, » he said so, he is also a combined student. « This has never happened before in an initial project. »
So much growth is thanks to artificial intelligence, he said so much.
App development developers can now download or automate more repetitive tasks and can generate a new code using great language models. He called it « vibration coding », a term to let the models take the wheel and generate software. In some cases, AI can encode whole applications.
The ability to subsidize a heavy work load has allowed these companies to build with fewer people. So, for about a quarter of the current YC startups, 95% of their code was written for Ai, he said so much.
« This seems a bit scary, but on the other hand, what it means for the founders is that you do not need a team of 50 or 100 engineers, » said so much that companies reach up to $ 10 million in revenue with teams of less than 10 people. « You don’t have to lift so much. The capital is much longer. »
Silicon Valley’s mindset during the time of zero interest has come out « out of the window, » he said so, he said so, pointing to a renewed approach to profitability. This concentration on the bottom line also applies to the technology companies of Megacap. Google, Goal and Amazon They have gone through several rounds of layoffs and withdrawn the hiring.
Although this shook some engineers, he described it as an opportunity.
It is easier to create a startup and the most important people at Tech do not have to prove their penalty to work in large technology companies, he said.
« There is a lot of anxiety in the labor market, especially the young software engineers, » he said. « Maybe it’s that engineer who couldn’t get a job on the goal or Google who can really build an autonomous business that earns $ 10 million or $ 100 million a year with ten people, this is such a powerful time in software. »
About 80% of the YC companies that presented this week were focused on AI, with a good handful of robotics and semiconductor startups. So he said that this group of companies has been able to demonstrate the previous commercial use compared to the previous generations, he said so much.
« There is a lot of hype, but what is unique right now is that people are really commercial validation, » he said. « If you are an investor in the Day Day, you can call a real customer and this person will say, » Yes, we use the software every day. «
And Combinator was founded in 2005 by Paul Graham, Jessica Livingston, Robert Morris and Trevor Blackwell. The firm invests $ 500,000 in startups in exchange for a capital participation. These founders enter a three -month program at the San Francisco headquarters and get guidance of members and alumni of YC. Demo Day is a way to attract additional capital.
The firm has financed more than 53,000 companies, which are worth more than $ 800 million in total. More than a dozen of them are public, and more than 100 are valued in a billion dollars or more. More than 15,000 companies are applied to enter the accelerator, with an approximate acceptance rate of 1%.
More of these venture capital incubators have appeared for the last decade and more capital has come to the startups of the initial stage. Despite the competition, he argued that and Combinator has an advantage thanks to his strong network. He pointed out the number of highly valued portfolio companies and again pushed the idea that specialized incubators were taking business.
« About 20 to 30% of companies during YC change their idea and sometimes their industry completely. And if you end up with a very specialized incubator, you may not be able to change -in what you should assume, » he said so much. « We think that the effects of the network and the benefits of doing YC have only become more daring. »
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