Y Combinator often backs startups that duplicate other YC companies, data shows — it’s not just AI code editors

YC often backs similar startups, valuing founders' potential over unique ideas.

: Y Combinator frequently supports startups with similar or identical products to previous graduates. They focus on founders' potential rather than unique ideas. Data from Deckmatch illuminates this trend, notably in AI code editors, PoS systems, and CRM startups. The practice supports direct competition, reflecting YC's emphasis on founder qualities over novelty.

Y Combinator is known for launching successful startups like Airbnb, but its support for nearly identical products is notable. Deckmatch's research shows YC frequently supports companies with similar products, counter to the expectation for unique ideas in Silicon Valley. CEO Garry Tan defends this strategy, emphasizing competition as beneficial, using examples like PearAI's controversy to illustrate.

Despite criticism, YC's approach rests on valuing founders' visions over their business ideas. Alums like Nick Evans appreciate competition, citing that understanding the industry benefits from familiarity with rival projects. This aligns with YC's strategy of focusing on the founders' potential to create transformative companies.

The analysis by Deckmatch highlights popular sectors like AI code editors and PoS systems backed by YC, reflecting this pattern. While some areas, such as crypto and e-commerce platforms, have recently declined, the focus remains on supporting promising founders. This approach encourages direct competition, influencing startups to excel through resilience and execution.

Startup competitionAI technologyFounders focus