YC Demo Day: What Happens Off-Stage
- S2E61
- 51:16
- September 16th 2025
Founders closing rounds before lunch. Investors making handshake commitments in the hallway. A startup with $9M+ ARR and another with $15M ARR lighting up the room. YC Demo Day isn’t a show; it’s a marketplace where speed and execution decide everything.
In this fast, founder-first debrief, we break down what actually happened at the latest YC Demo Day: the subtle format changes (that matter), why the one-minute pitch is only the opener, and how deals really get done. We cover the batch’s AI/devtools tilt, the contrarian bets in defense and hardware, and why early traction remains the single best predictor at seed. We also unpack portfolio construction, conversion-rate dynamics inside YC, and what support looks like after the cameras stop.
You’ll learn:
- The real Demo Day mechanics: tranches, chat apps, long breaks for dealmaking
- Why some hot rounds are already full and what to do about it
- How to win YC deals: first-meeting decisions, 24–48h timelines, and prep work
- The $9M+ ARR investment we made—and why traction beats narrative
- Why we’re now backing deeptech/hardware (missiles vs drones, autonomous excavators)
- Portfolio strategy: aiming for the fund returner, not spray-and-pray
Chapters:
00:00 Introduction and Demo Day Overview
00:15 Behind the Scenes of Demo Day
01:03 Changes and Improvements at YC Demo Day
03:11 Investor Insights and Strategies
04:23 Engaging with YC Startups
06:35 The Importance of Early Traction
09:49 Demo Day Pitch Dynamics
13:42 Fundraising Conversations and Strategies
18:07 Lobster Capital's Investment Approach
21:54 Portfolio Construction and Future Prospects
27:02 AI and Dev Tools: A Crowded Space
27:39 Challenges in Identifying Winners
28:48 Customer Acquisition: The Key to Success
29:57 The Importance of Traction
33:32 Investing in Deep Tech and Hardware
39:24 Evaluating Flywheel's Potential
45:46 Supporting Startups Post-Demo Day
50:09 Looking Ahead: The Never-Ending Cycle
📌 Watch now and subscribe for more smart, fast, founder-first interviews.
🎧 Listen on the go:
Spotify: https://open.spotify.com/show/1u1JyRKH8JYFjhBkvTUOAP
Apple: https://apple.co/4cZ8RMm
My other YouTube Channel: https://www.youtube.com/@GJarrosson
The Lobster Talks Podcast by Lobster Capital
Feast into the Startup Hustle with The Lobster Talks Podcast by Lobster Capital! Craving the real deal on starting and scaling a business?
The Lobster Talks Podcast by Lobster Capital serves up raw, unscripted conversations with experienced founders who've been there, done that (and gotten the investor backing!).
Join us as we dissect the triumphs and trials of the entrepreneurial journey, peeling back the layers to reveal the nitty-gritty of building a startup from the ground up. Our guests share their unfiltered insights, hard-won lessons, and practical tips to help you navigate the exciting (and sometimes messy) world of startups.
Subscribe now and get ready to hear honest, unfiltered stories from seasoned founders, uncover valuable insights and actionable tips for your startup journey, gain inspiration from those who've successfully navigated the fundraising game and join a community of passionate entrepreneurs eager to learn and grow.