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That was nice. Although, the interviewer just talked too much. A good journalist knows how to get out of the way. I have a question for pg, if he is reading th
by hristov 17y ago
That was nice. Although, the interviewer just talked too much. A good journalist knows how to get out of the way.
I have a question for pg, if he is reading this. You said that about 70% of the companies exit YC with funding or do not need further funding because they are already bringing in money. Do you usually return your investment at this point, or do you wait until a later VC round, or do you generally wait to the point where the founders cash out to return your investment?
- pg 17y agoLike most investors, we wouldn't normally get any return till what in the business is called a "liquidity event," meaning either an acquisition or an IPO.
- astrec 17y agoDividends? Or a clear preference for 100% reinvestment in growth and a bigger liquidity event?
- pg 17y agoTechnology startups have never paid dividends. There are probably multiple reasons why not. There might be some way to tweak dividends to make them work for startups, but I know so little about that sort of thing that I wouldn't want to speculate.
- astrec 17y agoOn revision, thanks for deciphering my terse question. As an aside, I did invest in one web startup which took the unusual step of returning the entire first round investment by way of dividends prior to an IPO. Very peculiar and not US based, so I figure your assertion holds.
- fnid2 17y agoHow many of the startups from YC make it to a liquidity event? What happens to the 30% who don't get funding or make it to profitability?