Updated
Updated · TechCrunch · Sep 13
VCs Pick 9 Deep Tech Startups at YC Demo Day as Valuations Turn More Grounded
Updated
Updated · TechCrunch · Sep 13

VCs Pick 9 Deep Tech Startups at YC Demo Day as Valuations Turn More Grounded

2 articles · Updated · TechCrunch · Sep 13

Summary

  • Nine startups drew repeated investor mentions at Y Combinator’s latest Demo Day, where this batch skewed much more heavily toward deep tech than recent cohorts.
  • VCs said the technology felt "like science fiction," but unlike recent batches, pricing looked more restrained even for the most sought-after companies.
  • Atomarine stood out with plans for floating nuclear-powered data centers and more than $4 billion in customer interest, while Isengard was already generating $10 million in revenue from jet-powered drones.
  • Other buzzy picks targeted AI infrastructure and robotics, including Dipole Labs’ optical networking hardware, Lamb Labs’ inference chips, Nori’s $1,600 home robot, and Waddle Labs’ robot-control API.
  • The list suggests YC investors are shifting attention toward capital-intensive bets in compute, defense, and robotics as demand grows for power, automation, and AI efficiency.

Insights

Could floating nuclear data centers solve AI's power crisis, or are they a regulatory and environmental disaster waiting to happen?
Will a $1,600 humanoid robot revolutionize household chores, or is it just an ambitious data-collection tool for AI developers?
Can optical networking hardware truly bypass AI's physical limits, saving billions in compute costs without introducing new technical bottlenecks?