Launched in 2005, Y Combinator is an American visionary seed funding startup accelerator that has backed many of the world’s top companies in setting up shop. The startup accelerator is behind companies like Dropbox, Twitch, Stripe, Reddit and Airbnb that today are looked up to. In this blog, we will be talking about top Y combinator companies and startups that are ruling their respective industries. Before we get into the names of the groundbreaking companies Y Combinator has nurtured, let’s have a brief look at Y Combinator’s history.
A Little About Y Combinator
California-based Y Combinator is a venture capital firm that was co-founded by Jessica Livingston, Paul Graham, Trevor Blackwell and Robert Morris. It is a Limited Liability Company (LLC) that has, till date, backed and nurtured over 2,000 companies. As of January 2021, the combined valuation of Y Combinator companies is more than US$300 billion. The goal of this VC is to get a startup through the first stage in which it gets to a point where it has built something groundbreaking and impressive enough to raise capital at scale. Though Y Combinator mostly provides seed funding to startups, it introduces its startups to investors and acquirers at later stages.
Now, let us have a look at a few top Y Combinator startups and companies.
Top Y Combinator companies and startups
Of course, the first in the list of Y Combinator companies has to be Airbnb. Airbnb is an online lodging marketplace that primarily offers homestays for vacation rentals. Headquartered in California, the vacation rental company was founded in the year 2008 by Joe Gebbia, Brian Chesky and Nathan Blecharczyk. This Y Combinator startup doesn’t own a single listed property on its website. It’s business model is based on receiving commission on each booking. In 2009, Airbnb received venture funding of $20,000 from Y Combinator and in 2020 it generated $3.378 billion in revenue.
In 2016, Y Combinator company Airbnb raised about $555.5 million in capital funding from Google Capital as well as Technology Crossover Ventures at a valuation of $30 billion. In 2017, it raised around $1 billion, bringing its total funding raised to over $3 billion and valuing the venture at $31 billion. In 2020, Airbnb raised another $1 billion in a funding round backed by private equity firms Sixth Street Partners and Silver Lake. Moreover, on December 10th, 2020, Airbnb became a public company through an IPO.