Top 10 Most Successful Startups from Y Combinator

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successful startups from y combinator

Top Startups from Y Combinator

Y Combinator is one of the most prominent startup accelerators in the world that provides startups with seed funding. Since its inception in 2005, it has funded 2000 startups.

The difference that Y Combinator creates for startups can be known from the fact that the combined valuation of alumni startups from Y Combinator that they once funded is more than 100 billion dollars now!

How do they help startups?

  • They work with startups on their ideas & use their own rich experience to help startups know the direction in which they should expand their ideas.
  • Help founders in dealing with investors and acquirers by teaching them the way to pitch their startups to investors, and the way to close a deal once the investors have generated interest.
  • They help startups right from incorporating their company and hiring their first employees to protecting their intellectual property. 
Image Source: fortune.com

Their funding Format:

  • They run two batches in a year to admit new startups into their program. Each batch runs for 3 months; one from January through March, and the other from June through August.
  • They provide seed funding of $150K to the startups for a 7% stake in the company & work with the companies for three months, to get them to refine their pitch to investors to raise money on a larger scale.

Criteria for Ranking the Startups

Here it is to be noted that the list of top startups from Y Combinator is based on valuation even though it is a poor way to measure a company’s value.

Y Combinator themselves say – “Valuation is a poor way to measure a company’s value in the short term. We still believe this to be the case and consistently warn our companies not to over-optimize their fundraising for a high valuation. That said, it’s the most commonly available metric to compare companies in the startup world. Other metrics, like revenue, are more often kept private”

List of Most Successful Startups from Y Combinator:

Let’s look at the top 10 most successful startups of all times that have been benefitted by Y Combinator:

Stripe

Founders
Patrick Collison and John Collison

Headquarter
San Francisco, CA

 Y Combinator Batch Year
2009

Number of Jobs Created
More than 2500

Current Valuation
$ 35 Billion

What do they do?
Stripe tops the list of most successful startups from Y Combinator. Through its software, it enables companies, both big and small to manage their business online and receive payments using the internet. They help new companies in starting up and increasing their revenue and also help already established companies in venturing into new markets along-side helping them to launch new business models.


Airbnb

Founders
Brian Chesky, Joe Gebbia, Nathan Blecharczyk

Headquarter
San Francisco, CA

 Y Combinator Batch Year
2009

Number of Jobs Created
Close to 6000

Current Valuation
$31 Billion in 2019 which dropped to $18 Billion (as of April 2020) due to COVID 19 pandemic

What do they do?
The second in the list of most successful startups from Y Combinator is Airbnb which is the online marketplace company that lets people rent their houses to travelers. It connects hosts and travelers and facilitates the process of renting without even owning a single room itself. House owners can rent their houses to travelers using the platform of Airbnb.


Cruise

Founders
Kyle Vogt and Daniel Kan

Headquarter
San Francisco, CA

Y Combinator Batch Year
2014

Number of Jobs Created
1500

Current Valuation
$19 Billion (as of 2019)

What do they do?
They are building the world’s most advanced, self-driving car technology which is all-electric to transform the experience of transportation. General Motors acquired Cruise in 2016.


DoorDash

Founders
Tony Xu, Andy Fang, Stanley Tang

Headquarter
San Francisco, CA

Y Combinator Batch Year
2013

Number of Jobs Created
1800

Current Valuation
$16 Billion

What do they do?
Doordash is an American on-demand prepared food delivery company. It uses logistics services to offer on-demand food from restaurants to consumers. Instead of tying-up with the drivers, it hires its own drivers for delivering food. 


Coinbase

Founders
Brian Armstrong and Fred Ehrsam

Headquarter
San Francisco, CA

Y Combinator Batch Year
Summer 2012

Number of Jobs Created
1000

Current Valuation
$8 Billion (as of December 2018)

What do they do?
Coinbase is a platform to buy, sell, and manage cryptocurrencies such as Bitcoin, Ethereum, etc. Here the users can create their cryptocurrency portfolio and start trading against a fee that they have to pay for using the services offered by Coinbase.


Instacart

Founders
Apoorva Mehta, Max Mullen, Brandon Leonardo

Headquarter
San Francisco, CA

Y Combinator Batch Year
Summer 2012

Number of Jobs Created
1100

Current Valuation
$7.6 Billion in 2018 which rose to $14 Billion (as of mid 2020)

What do they do?
Instacart is a North American Grocery delivery service that promises to deliver grocery to the consumers on the same day of placing an order. It works as an aggregator platform for grocery stores in North American cities and connects them to the consumers.


Dropbox

Founders
Drew Houston and Arash Ferdowsi

Headquarter
San Francisco, CA

Y Combinator Batch Year
Summer 2007

Number of Jobs Created
2300

Current Valuation
$12 Billion (as of 2018)

What do they do?
Dropbox is a collaboration platform with more than 500 million registered users across 180 countries. It enables storing and sharing of cloud content from Google Docs, MS office files, etc. and brings together the cloud content and personal files of the users. This makes file sharing very user-friendly over the internet.


Ginkgo-Bioworks

Founders
Reshma Shetty, Austin Che, Barry Canton, Tom Knight, Jason Kelly

Headquarter
Boston, MA

Y Combinator Batch Year
Summer 2014

Number of Jobs Created
270

Current Valuation
$4.2 Billion (as of 2019)

What do they do?
Ginkgo-Bioworks is a biotech company that provides cells to customers. They design custom organisms by learning from nature and sell them across multiple markets. Their process of organism engineering is automated using software and hardware.


Gusto

Founders
Josh Reeves, Eddie Kim, Tomer London

Headquarter
San Francisco, CA and Denver, CO

Y Combinator Batch Year
Winter 2012

Number of Jobs Created
1000

Current Valuation
$3.8 Billion (as of 2019)

What do they do?
Gusto is a platform that helps businesses manage almost all aspects of their employees including health insurance, payroll, time tracking, etc. Across the United States, it serves 100,000 small businesses.

Flexport

Founders
Ryan Petersen

Headquarter
San Francisco, CA

Y Combinator Batch Year
Winter 2014

Number of Jobs Created
1700

Current Valuation
$3.8 Billion (as of 2019)

What do they do?
Flexport is changing the freight forwarding system with a strategic operating model. It lowers the supply chain costs, with faster and more reliable transit times using a technology platform.

Look, what the founder of the 2nd best company in the above list says about YC.

Such priceless advices quite often help turn startups into successful giants.

The above list might be an inspiration for you as a startup to give a try to the Y Combinator program. Go ahead and let your idea create a global impact!


Do you feel there is something more to be included? Kindly write to us. We will be more than happy to consider your valuable suggestions.