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Ask HN: Why YC companies don't raise money after Demo day
Looking at this link: http://www.seed-db.com/accelerators/view?acceleratorid=1011 a lot of companies seem to not raise any money beyond the initial 120k from YC...what's the story behind these companies? I would expect all of them to raise substantial money at least a few months after Demo Day...
- minimaxir 10y agoThat is not a good expectation. Most startups don't raise money, but accelerators like YC improve the odds.
- tlb 10y agoMost pre-series-A funding isn't announced, so they don't appear in Crunchbase or seed-db.
- jaypaulynice 10y agoSure, but you have the option of saying "Undisclosed" right? Seems like a lot of startups use funding rounds for PR. I wanted to know if 120k is sustainable for more than 6 months or these startups have something else going for them...some could be profitable right away, but not half of all the startups...
- tlb 10y ago"Undisclosed" would be the answer for nearly every startup. All public databases can do is add up the reported fundraising to provide a lower bound. It's rare for a young startup to be profitable, but many have some revenue which extends their runway. Founders who live cheaply can stretch $120k well beyond 6 months. 24 months isn't uncommon.