Despite the decline, some argue that Latin American startups may not need Y Combinator. Many of the region's top startups did not go through the accelerator, and some are opting for bootstrapping rather than seeking VC funding. However, not being part of Y Combinator means these startups won't be part of its 10,000-alumni network. The situation may change soon as more founders from the region are starting to think globally.
Key takeaways:
- Brazilian startup Salvy was the only Latin American company in Y Combinator’s latest batch, a significant drop compared to previous cohorts.
- Y Combinator's recent batches have been smaller and in-person again post-pandemic, and the accelerator has cut down on efforts to incentivize startups to apply.
- AI startups dominated at Y Combinator’s Winter 2024 Demo Day, while fintech representation has shrunk. This could explain why Latin American startups, which often focus on fintech, are less present in this batch.
- Despite the decline in Latin American startups at Y Combinator, many of the region's top startups did not go through the accelerator, suggesting that it may not be essential for success in the region.