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The most recent cohort from Y Combinator<\/a> features more than 200 startups. The S23 batch stands out for several reasons. More than half of these startups focus on AI applications, highlighting a dominant trend we can expect in the coming years. It\u2019s also remarkable for at least one more reason: only one startup from the batch hails from India\/Southeast Asia, according to YC\u2019s official directory.<\/p>\n The declining participation of Indian and Southeast Asian startups in Y Combinator is slowly becoming a trend. The previous batches showed a steeper presence with 10 startups in the batch prior, 20 in S22, 37 in W22, 33 in S21, and a peak of 44 in W21. (Some Indian startups are registered in the U.S. and might not always identify as distinctly Indian, adding a layer of complexity to the analysis.)<\/p>\n In a statement to TechCrunch, a YC spokesperson attributed the drop to shift back to in-person events by the storied venture accelerator firm that necessitates founders to relocate to the U.S. for a quarter of a year.<\/p>\n \u201cWe\u2019ve found that there\u2019s no replacement for being in person with other founders and investors for the three months of YC. One impact of that however is that we\u2019ve seen international founders struggle to participate because of their inability to get visas,\u201d the spokesperson said.<\/p>\n The US government has intensified visa scrutiny, particularly for countries with high visa overstays in recent years, due to national security and illegal immigration concerns. Visa slots for Indian citizens have also been reduced.<\/p>\n \u201cThe founders of GigaML, for example, are world class researchers who trained Llama2 to beat Anthropic Claude 2. But the founders had to do office hours over Zoom because their visas were denied twice by US Immigration. Founders want to come to the US but can\u2019t. We need policy change,\u201d the YC spokesperson added.<\/p>\n Many founders and investors in India agree with YC\u2019s assessment, but some point that the U.S. giant nonetheless needs a broader focus in the region or else it risks losing its appeal. (The investors and founders spoke on the condition of anonymity to avoid upsetting their peers.)<\/p>\n Rival seed-focused program from Peak XV is also increasingly vowing local entrepreneurs<\/a>, offering more favorable terms and resources tailored to the local context.<\/p>\n A high-ranking executive at one of the high-profile VC firms additionally emphasized that YC\u2019s drive for Indian startups to register in the U.S. is becoming a liability for many of these entities.<\/p>\n The recent situation involving Silicon Valley Bank adversely affected those Indian companies<\/a> that were U.S.-registered and relied on the now-controversial bank with their finances. Furthermore, as many seasoned Indian startups realign their operations back to India, they face significant tax repercussions, which isn\u2019t ideal.<\/p>\n Additionally, as TechCrunch has previously pointed out, India currently has a limited depth in AI startups<\/a>, which might have also played a role in the decline.<\/p>\n<\/p><\/div>\n