> Last I checked, Y-Combinator is still considered a VC firm.
There was a time when pg would come out swinging and say that YC invests their own money which is very different from a VC firm.
Well, it did make YC different in the past: they took bets no one else would, which they could afford because of such a position. Is that still true? I’m not sure.
Diversification is a hedge against ignorance. Investors are always more ignorant than founders to begin with (breadth vs depth), and at the stage YC backs most companies at, even the founders don’t have much of a clue how successful they will be.