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This Week in Startups

Dave Mcclure & Jordan Stein on YC, "Spray and Pray", and Games VCs Play | E1923

Mar 30, 2024
Dave McClure, the founder of 500 Startups, and Jordan Stein from Cresset Partners dive into the world of venture capital, discussing their unique insights on Y Combinator's impact on the startup ecosystem. They debate the merits of the 'spray and pray' investment strategy while highlighting challenges in evaluating startups, especially during volatile market conditions. The conversation also touches on the importance of investing in outliers and harnessing talent from Latin America. The duo shares behind-the-scenes wisdom about navigating current trends and competitive dynamics in startup funding.
01:31:08

Podcast summary created with Snipd AI

Quick takeaways

  • Vertical focus and community are key for competing with Y Combinator.
  • VCs struggle with portfolio valuations without market pricing events.

Deep dives

Competing with Y Combinator in the Accelerator Space

Differentiators like vertical focus or geographical advantage are important to effectively compete with Y Combinator, which stands at the top with a strong community and signal value. While some accelerators may offer similar services, replicating YC's network impact is challenging.

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