Since its inception, Y Combinator has invested in thousands of startups, and more recently hundreds in a single batch. Given the growth of the accelerator, competitive tensions seem almost inevitable.
However, the question arises whether a fundamental shift is taking place. While YC has always favored companies that may overlap at some point, the group exists for companies using each other’s products and companies using each other’s products, with different startups at different stages from different regions. she spreads her net everywhere. Alumni network.
However, now YC is actively leaning towards startups of almost the same age, operating in similar countries and targeting similar opportunities with almost similar business models. While similar types of businesses within the class have become inevitable as the size of the YC class has grown, any resemblance to the latest group of 400 startups is more obvious than ever. In fact, it looks like the plan here is to support more and more up-and-coming rival teams and then let them fight it out.
Perhaps unsurprisingly, Y Combinator sees things differently. At least when asked about the many startups competing from the start, a YC rep wrote in an email: “These companies are not in the same group and do not interact. Packages are also often run at startup time. ,
TradeX and the best opinions
Founded in the same year and in the same place, TradeX and Better Opinions share the same goal: to enable people to bet on their predictions and win. Startups are creating platforms where people can exchange money from movie launches to betting on who will be the next president. There are even bigger future events to bet on, such as climate change, inflation, and whether Omicron cases will rise or fall in a particular location.
The only obvious difference between the two companies is that TradeX is geared towards high income Indians while Better Opinion is more focused on inclusion and accessibility.
Firezone and Netmaker
Back in 2018, our very own Romain Dillet built his own VPN server with WireGuard, a faster and more secure alternative to existing VPN software. Firezone and NetMaker, both members of this Y Combinator group of startups, are open source VPNs built on top of WireGuard. NetMaker claims it’s 15 times faster than OpenVPN, the popular VPN software, while Firezone claims it’s 4 times faster. But speed isn’t everything – it’ll be hard for it to provide better customer service, firewall options, and ease of use than others to compete with its peers. Both startups have a free plan and a paid plan for large business teams, but neither company shares pricing for these paid plans, so we can’t compare their prices just yet.
streak and iodine
Remember that Strik and Yoda are less than two years old, both live in Bangalore, and both are trying to build a banking business that helps teenagers make ends meet by keeping them informed about their spending and helping them save. (Both also offer a gamified approach where kids can earn coins for certain spending behaviors.) It’s clear they’ll be competing for the same customers who might be using two different banking apps. (more here.)
Fincu and Pina and Sribuu
Everything three Among them are start-ups with a personal financial advisor based in Jakarta and created within the last two years. Yes, Indonesia is a big market, but come on.
Tradezzy and unfinished
Tradezy is a month old startup from Ho Chi Minh City, Vietnam that calls itself the “Robinhood for Southeast Asia”. What it does (or will do): Provides free online trading accounts that allow users to invest in stocks, cryptocurrencies and other alternative assets in one place. This is very similar to Unfin, a year-old Ho Chi Minh-based startup that is building a digital brokerage company in Vietnam that connects users to the stock market in a “simple and intuitive way.” Investors can register brokerage accounts for both companies, but will they?
The list goes on, featuring two similar insurance startups in Mexico City. And that’s not to mention the startups from the latest YC packages that are also competitors, many of which already have some funding and momentum.
Even startups with a different approach — some robo-advisors, some Robinhood clones, some neobanks — may soon be competing for space. As we have seen, especially in the case of fintech, all fintech products work horizontally until they disappear. That’s why SoFi invests in stocks, Robinhood has a debit card, and so on. When you’re done getting a consumer into your fintech world, you want them to use as many products as possible, so keep adding.
This means that no matter where this group starts, Y Combinator has invested money and energy in many companies that may sooner or later compete with each other. Bringing consumer fintech solutions to Southeast Asia could be a real battle royale that involves more than just vacuuming.