Gabriel Jarrosson, a French engineer turned YouTuber and investor, has carved a unique path in the venture capital landscape by focusing exclusively on Y Combinator (YC) startups. His firm, Lobster Capital, has successfully raised over $12 million, with plans for a larger second fund underway.
The Genesis of a Unique Investment Strategy
In 2017, Jarrosson, frustrated by limited access to promising French startups, launched a YouTube channel to document his investment journey. The channel quickly gained traction, evolving into one of Europe’s largest angel syndicates. By 2020, this syndicate had deployed $36 million into startups, predominantly YC alumni, laying the foundation for Lobster Capital.
Why Y Combinator?
Jarrosson’s exclusive focus on YC startups is rooted in compelling statistics. According to a report by Lenny Rachitsky, approximately 4.5% of YC companies achieve unicorn status, compared to 2.5% for other venture-backed seed-stage startups. Additionally, around 45% of YC companies progress to raise a Series A, surpassing the 33% average. With over 90 unicorns and several decacorns in its portfolio, YC’s track record is impressive.
This success justifies the premium valuations often associated with YC deals. Jarrosson believes that the potential for significant returns outweighs the higher initial investment costs. He emphasizes the importance of assessing a company’s potential to become a unicorn, stating that if the answer is affirmative, investing at a higher valuation is acceptable.
Leveraging AI and Content Creation
Lobster Capital is capitalizing on the current AI boom, with a significant portion of its portfolio comprising AI-driven companies. Jarrosson’s background in content creation provides a unique advantage in identifying and supporting startups that effectively utilize AI to enhance user engagement and product development.
The Power of Community and Transparency
Jarrosson’s journey underscores the value of community building and transparency in venture capital. By sharing his experiences and insights through YouTube, he has cultivated a loyal following and established a robust network of investors and entrepreneurs. This approach not only democratizes access to investment knowledge but also fosters trust and collaboration within the startup ecosystem.
Looking Ahead
With plans for a larger second fund, Lobster Capital aims to deepen its commitment to YC startups. Jarrosson’s strategy of combining content creation with strategic investments positions the firm to continue identifying and supporting high-potential companies.
