The preeminent Silicon Valley program responsible for incubating firms like Coinbase, Faire and Instacart is downsizing its summer cohort to 250 companies after graduating a record 414 in the winter term. (The Information)

Talking point: Y Combinator had aggressively scaled up its program during the pandemic, as it shifted online. It also increased its budget for individual startups from US$125,000 to US$500,000 after a wave of companies it backed went public. Critics, however, have said the expansion has damaged its reputation for supporting only the most promising startups. The recent scale-back follows a return to in-person programming as well as a slowdown in deal-making across the venture capital ecosystem, as broader economic uncertainty has spurred investors to be more selective.