This French VC went from posting on YouTube to raising a $12M fund for Y Combinator startups

Gabriel Jarrosson, a former engineer and YouTube content creator, is making waves in the venture capital landscape with a unique investment philosophy. His firm, Lobster Capital, is built on a singular focus: investing exclusively in startups that have gone through the Y Combinator (YC) accelerator program. This disciplined approach has allowed Jarrosson to grow his assets to over $12 million, with plans for a larger fund already underway, as revealed in recent SEC filings. Frustrated by the scarcity of promising French startups, Jarrosson turned to YouTube in 2017 to document his investment journey in French. His channel quickly gained traction, evolving into one of Europe's largest angel syndicates. Since 2020, Lobster Capital has invested a staggering $36 million in various startups, primarily those with YC roots. This successful track record led to the launch of Lobster Capital’s debut fund, which exceeded its initial $8 million target. Jarrosson’s rationale for exclusively backing YC companies is rooted in data. Reports indicate that approximately 4.5% of YC startups achieve unicorn status, significantly higher than the 2.5% for other seed-stage investments. Furthermore, about 45% of YC firms progress to Series A funding, outpacing the 33% average in the industry. With more than 90 unicorns and a quarter reaching decacorn status, Jarrosson sees the premium valuations for YC deals as justified. In an interview with TechCrunch, Jarrosson emphasized the importance of potential returns, stating, "If you think about the VC math and the returns, these outcomes are obviously great for your portfolio. As investors, you have to ask yourself, can this company become the next unicorn?" His commitment to investing at higher valuations reflects a calculated risk, acknowledging that while some may pass on opportunities, he chooses to act. Lobster Capital, like many early-stage investors, has benefitted from the recent surge of AI-driven startups emerging from YC. Jarrosson noted that recent cohorts have set new revenue growth records, with many companies generating millions in annual recurring revenue (ARR) in a matter of months. While there are concerns about the sustainability of this growth, he believes that strong early revenue is a critical hurdle that startups can overcome. Access to these lucrative investments is a challenge, as YC demo days attract numerous funds vying for the same opportunities. Jarrosson attributes his competitive edge to his reputation within YC’s ecosystem, enhanced by his content creation and his background as a founder. He has garnered positive ratings from YC founders on Bookface, the accelerator’s internal platform, which aids in securing allocations. Jarrosson’s podcast featuring YC founders and his substantial LinkedIn following, where he shares insights on investment and entrepreneurship, further solidify his presence in this space. He views social media and content creation as vital tools for fostering community and attracting limited partners. With more than 100 investments under his belt, Lobster Capital has backed nearly 30 startups across sectors like B2B SaaS, fintech, and AI. Among his portfolio, he proudly highlights two unicorns and several promising “soonicorns,” including notable names like Jeeves and Flutterflow. Reflecting on YC’s longstanding success, Jarrosson remarked, "YC has the track record. It’s been around for more than 20 years now. We know it backs the best founders and creates the best founders." He believes that the future of YC-backed startups holds even greater promise, reinforcing his strategy of investing only in this select group. Similar to Jarrosson, other VC firms like Initialized and Pioneer Fund have also adopted this focused investment approach.