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Are Y Combinator valuations really too high?

Plus, 5 interesting startup deals you may have missed

August 31, 2023

Hi, Agen. Sure, Y Combinator counts some of the best-known startup brands in the world among its alums, from Stripe to Airbnb to Reddit to Instacart. But with each new cohort of young companies that graduates from the accelerator, the same debate emerges: How can such early-stage startups justify such high valuations?

💡 5 interesting startup deals you may have missed in August

What do window-cleaning robots and a virtual companion for the elderly have in common? Besides the obvious — AI — those startups and more got funding in under-the-radar deals this month. Let’s take a look at five interesting, kind of wacky, startups that landed investor cash in August.

🤨 Are YC valuations really too high?

Y Combinator has developed a reputation for launching startups into the investment market at eye-watering prices. That’s particularly striking as we find ourselves in the midst of a down market for venture funding. But are those valuations really so out of touch? Dan Gray of startup valuation platform Equidam makes the case that they’re not.

😐 2023’s startup IPOs have a very mixed track record

This year’s IPO class contains some very big winners (like restaurant chain Cava) — and some very big losers (despite its name, mortgage platform Better is … not doing great). There’s a lot to dissect in this mixed bag if you’re a startup eyeing a 2023 or 2024 IPO.

Related Crunchbase Pro list: Startup IPOs of 2023

🪖 Are VCs warming up to defense tech?

Tech investors have long been squeamish about backing military and defense startups. But with the war in Ukraine raging and tensions between the U.S. and China simmering, that may start to change, some people in the industry say, especially with the definition of defense tech broadening out from tanks and missiles to areas like space, cybersecurity and AI.

Related Crunchbase Pro list: Defense Tech Funding

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