The early-stage companies chosen for the prestigious startup accelerator include Alt Tex, which makes textiles from food waste; Lancey, an interactive product demo platform; and KemNet, which reformulates popular drugs for specific patients. (The Logic)

Talking point: The companies join a cohort that is roughly 40 per cent smaller than in previous years. Y Combinator, famous for backing major tech companies like Coinbase and Instacart, had attracted criticism over the years from those who felt the accelerator diminished its own cachet by accepting too many startups. It also increased its funding for startups from US$125,000 to US$500,000 after some of its portfolio companies went public. Y Combinator’s decision to shrink the size of the group follows a slowdown in tech investment so far this year. The incubator will have new leadership this fall: Initialized Capital co-founder Garry Tan is replacing Geoff Ralston, the organization said in August.