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I'm curious about the reasoning for this. Is it purely due to not having the time to read through all of them as thoroughly as you'd like, or to help make sure apps don't fall through the cracks (or none of the above)?

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Both; those are the same problem, since the biggest danger of not being able to read them all thoroughly enough is that a good one slips through the cracks.

How many application have you received so far, if you don't mind disclosing that ?

We don't publish application numbers anymore, lest it tempt competitors into a numbers race. Plus the number now would be pretty meaningless, because half the applicants apply in the last two days.

half the applicants apply in the last two days

If that doesn't scream out to everyone that applying early is important, I don't know what will.

I don't think it says anything about importance. I think if you polled YC alumni, you'd find a healthy number of them applied in the last two days.

Will you still be reading all the applications then?

Yes, YC partners will still read all the applications.

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