Investing in the top 2% of YC startups

San Francisco
Lobster Capital retweeted
This chart is @LobsterCapVC's entire investment memo. YC 94, next best 70, measured on revenue instead of markups. Three years, 100+ YC companies, zero outside.
From Seed to $100M revenue: the funds that pick the winners. Unicorn valuations tell one story. Revenue tells another. Y Combinator leads with 94 companies, ahead of SV Angel (70) and 500 Global (36). Featuring in this top 20 (and ties) list represents 99th percentile performance. Top 20 investors by $100M+ revenue companies backed at Seed 👇
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Growth rate trumps everything. Founders raising funds should focus on rapid monthly ARR growth – it fuels higher valuations and accelerates success.
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Starting a business with massive debt and no confidence is tough. Initial funding often goes to debt repayment. Having resources and belief in your judgment is key to success, but investor support can make that lonely road much easier.
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Raising a $20M+ round at a high valuation early in YC surprised many. The decision to raise sooner, not later, fueled the surprise. Discover the strategy behind this bold move.
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Google's product graveyard reputation is real. Even Google Cloud faced skepticism, with many pushing to focus on ads. It took years to convince leadership of cloud's potential, proving that even successful products struggle to gain executive buy-in without massive revenue.
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Firebase wasn't the start. Andrew Lee's journey included failed startups before YC and pivoting a chat product into what became Firebase, later sold to Google. Big companies often move slower than feared.
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New AI models like Claude 4 are enabling autonomous agents, creating a massive opportunity for billion-dollar companies. It's time to get in on the ground floor.
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In 2025, the company nearly ran out of money after a long period on initial funding. The option of shutting down was seriously considered.
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Customers weren't happy with the UI and wished it worked differently. The solution? Get rid of the UI and let their engineers build directly on the APIs. This unlocked huge potential for frontend teams held back by backend limitations.
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Don't compete directly with AI giants. Instead, find the 20% they've overlooked and go after it with all your focus.
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Once refused YC, but a co-founder applied behind my back. We got in and it was absolutely worth it. Don't let initial setbacks stop you from pursuing opportunities.
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Success hinges on solving a genuinely painful need. If your problem isn't painful enough, it's nearly impossible to achieve venture-scale results. Even a 'big market' like email fails if the gap between existing solutions and yours isn't significant enough.
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