The YC Demo Day almost turned investors away at the door — and that might’ve been the point. In this behind-the-scenes breakdown, Gabriel Jarrosson (Lobster Capital) and Laurie dissect the most exclusive Demo Day yet, revealing why this Spring 25 batch could be the best in years.

We explore YC's most AI-heavy cohort, debate sky-high valuations, and uncover what separates a good startup from a breakout unicorn.

You’ll learn:

Why YC Spring 25 had a record 0.8% acceptance rate

What caused Demo Day chaos at the YC office

How to evaluate traction vs hype in early AI startups

Why some investors are restructuring funds just to get into YC

How to get allocation in oversubscribed rounds

Gabriel’s method for revenue due diligence during Demo Day

📌 Watch now and subscribe for more smart, fast, founder-first interviews.

Chapters:

00:00 Welcome to Lobster Talks: Behind the Scenes of YC Spring 25 Demo Day

00:21 The Unique Challenges of This Year's Demo Day

02:50 Impressive Stats and Trends from the Spring Batch

04:30 The Growing Influence of AI in YC Startups

09:03 Investor Insights and Revenue Due Diligence

15:33 Evaluating Founders and Early Traction

18:07 The Darwinian Approach to Startup Evolution

18:41 Revenue as the Ultimate Proof of Success

21:13 Navigating Competition and Investor Strategies

21:48 The European Angle and Hot Deals

23:12 Valuation Challenges and Investor Decisions

25:27 The Role of Media and Networking in Investment

26:40 High Valuations and Future Growth

32:16 Follow-On Strategies and Growth Metrics

35:22 Conclusion and Final Thoughts

🎧 Listen on the go:

Spotify: https://spoti.fi/4m2K7ah

Apple: https://apple.co/4cZ8RMm

My other YouTube Channel: https://www.youtube.com/@UCahCIZ9KfmeK4rLosGNYpdg