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Ask HN: Why YC companies don't raise money after Demo day

1 points by jaypaulynice ↗ HN
Looking at this link: http://www.seed-db.com/accelerators/view?acceleratorid=1011 a lot of companies seem to not raise any money beyond the initial 120k from YC...what's the story behind these companies? I would expect all of them to raise substantial money at least a few months after Demo Day...

4 comments

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minimaxir
That is not a good expectation. Most startups don't raise money, but accelerators like YC improve the odds.
tlb
Most pre-series-A funding isn't announced, so they don't appear in Crunchbase or seed-db.
jaypaulynice
Sure, but you have the option of saying "Undisclosed" right? Seems like a lot of startups use funding rounds for PR. I wanted to know if 120k is sustainable for more than 6 months or these startups have something else going for them...some could be profitable right away, but not half of all the startups...
tlb
"Undisclosed" would be the answer for nearly every startup. All public databases can do is add up the reported fundraising to provide a lower bound.

It's rare for a young startup to be profitable, but many have some revenue which extends their runway.

Founders who live cheaply can stretch $120k well beyond 6 months. 24 months isn't uncommon.