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Ideatrotter

Broadcasting Our Innovative Future Now
Is There a YCombinator Valuation Bubble or Not?.

In 2011, Jon Bruner from Forbes had posed the same question with relation to the general industry and whether we were close to a tech bubble. His interview with Hiten Shah, CEO of Kissmetrics, led them to believe that there is no imminent danger that would warrant the birth of a bubble or, atleast, the bubble would not be the size of the 2001 one. They designed a very comprehensive infographic, detailing their research.

Circa 2012, Instagram was acquired; Facebook is on the brink of its IPO and tongues are wagging about Google acquiring Pinterest to counter the Facebook-Instagram acquisition. Y Combinator has fuelled the birth of many young and energetic startups, looking to reach the big leagues. Valuation caps per startup have increased in the 33%-100% range in the past year. In contrast to the industry valuation caps, the YC valuation caps have increased between 375%-500%. 

This led Jason Calacanis to ask the following questions again:

1. Is there a bubble?

2. Is there a YC bubble?

3. Are You Better off Investing in Two Non-YC Startups at 1/2 the Price?

The link provided mentions what he had to say.