YC states fairly openly that it's looking for the outliers and that it makes its real money from the Dropboxes, AirBnBs etc. If the top incubators only make the

YC states fairly openly that it's looking for the outliers and that it makes its real money from the Dropboxes, AirBnBs etc. If the top incubators only make their money from the top companies in them then it makes me wonder whether if a market has already been tapped (London by Seedcamp, SF and further by YC etc) anyone else can make the returns they need. Multiple VCs and Angels can exist in the same segment because funding at that stage is polygamous. You get funding from multiple angels or VCs so a number can compete. The ecosystem may not support many but it can support more than one. If an incubator can only make its money from the top companies though and there is another incubator that already has the top companies in a particular market then do the economics actually work? YC, Seedcamp, TechStars etc all arguably cover overlapping but different markets but I wonder whether the economics literally stop you dead from doing another incubator in SF or in London. It strikes me that the only entrance is either to go above or below the incubator or go to a completely different market.