Startup accelerator Y Combinator, an early backer of firms such as Airbnb, Dropbox and Reddit, said on March 16 its Summer 2020 batch could be held remotely due to the coronavirus outbreak that has now spread to more than 110 countries.
Silicon Valley-based Y Combinator, known as YC, has a program for aspiring entrepreneurs, providing them mentorship and investment. The two to three-month program allows founders to interact among themselves and with industry experts. It culminates in YC Demo Day, where selected companies pitch their products to potential investors.
“Like every organization, we’ve been weighing how to respond and have already announced that W20 Demo Day will be a week early and online only... Additionally, depending on the circumstances this summer, some or all of the batches may take place remotely over the video,” Y-Combinator said in a blog post.
YC is seen as the world’s marquee incubator of startups and it has ramped up its India focus. For its winter 2019 batch, YC picked a record 28 Indian startups, more than double the 12 firms it previously picked.
Its Indian portfolio includes payments firm Razorpay, tax- filing startup ClearTax and social commerce firm Meesho.
The announcement is the latest blow to the startup world in particular and the global economy at large which is already faced with lockdowns, severe travel restrictions and disrupted supply chains.
The highly contagious flu-like virus that causes respiratory distress has killed at least 5,800 and infected 169, 605 people across the world after it emerged in China late last year.
The WHO has called the outbreak a pandemic. While infections have slowed in China, they are spiking in other countries, especially in Europe. Infections are rising in India as well, with 110 confirmed cases and two deaths, so far.
“YC done remotely is definitely not going to be the same experience and is a loss to the founders who will be part of the summer batch,” said a YC alumnus, who was part of the 2019 its batch from India.
In any case, investors were not in the mood to fund risky businesses, which startups generally are, because the virus had destroyed sentiment. "But being in the (Silicon) Valley for YC helps founders from emerging economies understand funding dynamics and network like never before,” the person, who didn’t wish to be identified, added.
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