What Business Models Do Investors Favor?

YC has invested in over 4,000 companies. Among the top 100, SaaS accounts for 31%. SaaS is highly regarded because investors pay for certainty — it’s a stable revenue model.

Marketplace businesses make up 22%. They’re favored because they can achieve a form of market monopoly and ultimately build massive marketplace revenue and profits.

Payment infrastructure businesses account for 14%. By integrating into their business model and capturing a share of cash flow, they also generate predictable returns.

Advertising and e-commerce business models are virtually absent from this top 100, because they require becoming a dominant traffic hub to earn significant profits — which is currently quite difficult.

Nine Business Models and Pricing Strategies for Startups | Jizhi Insights