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Y Combinator founders raising less money signals a ‘vibe shift,’ VC says


Otherwise Fund's Terrance Rohan, investing in Y Combinator since 2010, says he noticed a "vibe shift" with this batch thanks to AI.

Terrence Rohan, an investor with Otherwise Fund who’s been investing in Y Combinator since 2010, says he’s noticing a “vibe shift” from some founders in the current batch of the famed accelerator. For instance, Anysphere, which makes the popular AI-coding assistant Cursor, reportedly reached $100 million in annual recurring revenue (ARR) earlier this year with a team of only 20 people. “VCs are very charming and persuasive, and they’re throwing money,” said Rohan, adding that these companies are likely obtaining funding with low dilution, meaning they aren’t giving up significant ownership.

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