Business

Y Combinator urges start-ups to ‘plan for the worst’ in economic slowdown

Prestigious Silicon Valley-based accelerator programme warns companies of difficult time ahead as economic conditions worsen

Michael Seibel, managing director at Y Combinator, addresses a group of founders. The number of start-ups enrolled in a YC batch is now in the hundreds

Should start-ups be worried about a global economic slowdown? Yes, according to Y Combinator, the prestigious Silicon Valley-based accelerator programme.

It warned in a note to companies recently that it is time to batten down the hatches.

Given that well-known tech companies such as Airbnb, Stripe, Coinbase, Doordash, Instacart, Reddit, the Athletic and Dropbox all got a signficant lift after securing spots on the Y Combinator programme early on, their advice is worth heeding.

“No ...