The Best Time to Build in Crypto

Y Combinator

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Video Summary

Despite a downturn in the crypto market, Y Combinator expresses optimism, having invested in over 100 crypto startups and anticipating significant future growth. They foresee widespread adoption of crypto rails for various functions, from fundraising to payments, often without users realizing it. The firm highlights growing regulatory clarity, institutional adoption of stablecoins and tokenized stocks, and the potential for crypto networks to serve as financial rails for agents. Bear markets are seen as ideal for genuine project development, attracting dedicated founders focused on building rather than speculative gains.

Y Combinator has backed major crypto players like Stripe and Coinbase, alongside infrastructure projects such as Beliani Pay, Infinia, and Sporeum, which are developing developer interfaces and remittance solutions for Latin America and India. The firm is particularly excited about advancements in capital raising, stablecoins, generative commerce, trading, institutional products, and scalable, private blockchains, with more details to be shared soon. The application deadline for their fall batch is July 27th.

Short Highlights

Y Combinator is optimistic about crypto despite current market conditions.
They expect widespread adoption of crypto rails for various financial functions.
Regulatory clarity and institutional adoption are increasing.
Bear markets foster genuine building and attract dedicated founders.
YC is investing in infrastructure and future-focused crypto projects.

Key Details

YC's Crypto Optimism [00:00]

Despite a dispiriting crypto market, Y Combinator is more optimistic than ever.
They have invested in over 100 crypto startups and expect this number to increase significantly.
YC anticipates that eventually, every startup will use crypto rails for functions like capital raising and payments, often without users knowing.

It sounds crazy, but at Y Combinator, we're more optimistic than ever.

Fintech Adoption and Regulatory Clarity [00:26]

Many YC-funded fintech companies outside of crypto are building with it, citing Deel and Gusto as examples.
Regulatory clarity is emerging in the crypto space.
Major financial institutions are adopting stablecoins, and tokenized stocks are transforming trading.

Regulatory clarity is finally here.

Innovation and Market Dynamics [00:41]

Projects like Hyperliquid are challenging traditional stock exchanges.
It's seen as inevitable that agents will use crypto networks as financial rails.
Bear markets are considered the best time for real projects to build and thrive, unlike speculative bull markets.

In crypto, prices are really decoupled from reality.

Attracting Dedicated Founders [00:53]

Bear markets deter those seeking quick profits from criminal offers of infinite yield.
They attract founders focused on building and achieving early liquidity events.
YC has funded major teams like Stripe, Coinbase, and Axiom, as well as infrastructure projects.

They attract a different type of founder, more focused on building and getting an early liquidity event.

Infrastructure and Global Applications [01:19]

YC is investing in infrastructure and future bets, including developer interfaces and ramps for Latin America.
Companies like Beliani Pay and Infinia are building these tools.
Sporeum is developing an easy way to transfer money to India using stablecoins.

Sporeum is building the easiest way to transfer money to India using stablecoins.

Areas of Excitement [01:31]

Y Combinator is excited about capital raising, new stablecoins and their applications, and generative commerce.
Other areas of interest include institutional products and scalable, private blockchains.
More details on these categories will be shared in the coming days and weeks.

Just some of the things we're excited about are capital raising, new stablecoins and stablecoin applications, a genic commerce, trading, institutional products, and scalable and private blockchains.

Application Deadline [01:47]

The next application deadline for Y Combinator's fall batch is July 27th.
Interested parties can apply at ycombinator.com/apply.

Our next deadline is July 27th for our fall batch.