Stablecoins and Metaverse Next Bet for Y Combinator Startups

    Published on:

    Stablecoins, the Metaverse, and AI are areas where Y Combinator is encouraging companies to innovate because of their potential to transform enterprise solutions, immersive technology, and finance.

    Silicon Valley incubator Y Combinator believes stablecoins, the metaverse, and artificial intelligence (AI) are the most promising areas for innovation.

    According to the annual “Requests for Startups”, report Announced on February 15, Y Combinator said stablecoins have great potential as affordable cross-border payment options. The company is also excited about augmented reality (AR) and virtual reality (VR) technology that has applications beyond gaming.

    However, artificial intelligence (AI) has the potential to streamline “back-office processes” and enterprise software.

    Also read: Former general who promised to spend $9 billion on Metaverse cities wins Indonesian presidential election

    Y Combinator group partners speak

    Stablecoins are expected to be “a big part of the future of money,” said Y Combinator group partner Brad Flora, who likened the space to the digital music space in the early 2000s.

    According to Flora, this all seems a bit like the transition of digital music from the realm of lawless file sharing in the early 2000s to becoming the norm as players like Apple entered the market. Flora added that, importantly, all of these important players were losing out to Spotify, a startup founded during that very transitional period.

    He added that this utility is so simple that it is inevitable that traditional finance will follow suit.

    Y Combinator's agenda includes cancer treatment

    Flora said U.S. banks hold $17 trillion in customer deposits that are also available. Still, major stablecoin issuers can be counted on one hand, and major liquidity providers can be counted on just fingers.

    Y Combinator is looking for proposals from tools, platforms, new stablecoin protocols, and teams creating B2B and B2C products using stablecoin technology.

    Its investments are focused on multiple areas including AI, robotics, spatial computing, and climate technology. One of its ambitious goals is to find a cure for cancer.

    Startup funding

    According to the company, Y Combinator has funded 81 Web3 and crypto companies, including Coinbase, OpenSea, TRM Labs, and Quantstamp.

    Diana Hu, another group partner at the company, said that although these technologies are still in their infancy, the company expects to see more entrepreneurs create non-gaming products for AR and VR devices. states.

    Hu further said that there are many challenges to solve in finding the best use cases, UX/UI practices, etc. They are excited to collaborate with the founders on this frontier of technology. She added that her recent releases of Apple Vision Pro and Meta Quest 3 show progress in the right direction.

    Although the user experience has improved, rendering power has improved, and hand/eye tracking has improved dramatically, challenges remain.

    He further acknowledged that user experience (UX) and user interface (UI) issues continue to hinder widespread adoption.

    Large-scale language models (LLMs), enterprise software built with AI, and “explainable AI” were all on Y Combinator's list of focuses required for startups.

    Harj Taggar, one of Y Combinator's managing directors, believes AI can help startups develop their own plans, talent, and customer relationship management, rather than having a one-size-fits-all enterprise solution. I am.

    According to Harj, a product based on this premise would be highly disruptive to existing large companies. Because they can't win by simply copying you and adding additional features to their bloated software.


    Leave a Reply

    Please enter your comment!
    Please enter your name here