Y Combinator's latest class is a feeding frenzy for VCs looking to back AI startups: 'There's hysteria for a reason'
Several generative AI startups have already secured funding from top firms, sources say.It's been less than a week since Demo Day atIn Y Combinator's latest winter 2023 batch, a number of startups have already landed investments from high-profile VCs, Insider has learned., were some of the most highly sought after by investors.
On the application side, Yuma, a ChatGPT for customer support, landed funding from Gradient Ventures and Frst, according to one person with direct knowledge of the financing who was not authorized to speak publicly. Initialized Capital and Latent declined to comment. Lasso AI, Turntable, Gradient Ventures, Frst, General Catalyst, and Nat Friedman didn't respond to a request for comment.
Lux Capital's Grace Isford told Insider that many startups from this batch were pitching investors on valuations that were"a bit compressed" from what was the norm last year.
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