Startup accelerator, Y Combinator has laid off 17 team members who are roughly 20% of the accelerator’s employees.
According to TechCrunch, the accelerator stated the collapse of Silicon Valley Bank isn’t the reason for the job cut.
The accelerator said they have been strategizing about moving “well before” the collapse.
More than 30% of Y Combinator’s startups were affected by SVB.
In a memo written by YC CEO, Garry Tan, he said,
“There shouldn’t be any noticeable effect on the companies we’ve funded or on the way we interact with alumni, but if any companies or alumni have questions, I’m here and the YC group partners are here — as always, to help you make something people want,”
Tan told YC companies earlier that “anytime you hear problems of solvency at a bank, and it can be deemed credible, you should take it seriously and prioritize the interests of your startup by not exposing yourself to more than $250,000 of exposure this year,”
“this is an extinction level event for startups and will set startups and innovation back by 10 years or more. BIG TECH will not care about this. They have cash elsewhere. All little startups, tomorrow’s Google and Facebooks, will be extinguished if we don’t find a fix.” the CEO tweeted twenty-four hours later.
He also penned a petition which has been signed by over 5,000 tech CEOs and founders, asking the congress to support to save tech community.
YC stated the collapse of the Silicon Valley Bank isn’t the reason for the job cut but it’s hard to believe going by the devestasting effect of the collapse of the bank.