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I don't see any reason not to take what was said at face value. There's no reason to automatically pass on what seems to be a great opportunity just because yo
by WhitneyLand 11y ago
I don't see any reason not to take what was said at face value. There's no reason to automatically pass on what seems to be a great opportunity just because you're not first in line. The reason to pass is that the data supports a lower success rate.
- junto 11y agoIt just seems backward to me. I understand that YC are in the business of jump-starting startups with potential. A handful of those startups might succeed. Their entire business model seems to focus on the returns from that small handful of successes. If I were them, my primary reason for taking these companies onboard and helping them to succeed, is purely to see a profit at the end of the line. Hence, dilution is very bad. That would be my primary issue.I just don't understand why it was stated as a minor side point to the whole discussion. Surely it is absolutely important?
- lmm 11y agoThe dilution isn't normally that severe. A 900x return at a 7% success rate would be better than a 1000x return at a 5% success rate.