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PG was asked that ... somewhere (Mixergy?). He said that it was pretty much setup such that YC wouldn't get any money without a liquidity event (because that's
by jackowayed 16y ago
PG was asked that ... somewhere (Mixergy?). He said that it was pretty much setup such that YC wouldn't get any money without a liquidity event (because that's what they expect companies to go after), but he did say that theoretically they might be able to work something out whereby a profitable company that doesn't want to exit pays dividends to all stock holders, which of course includes YC.
Edit: it was indeed Mixergy:
Andrew: If a Y Combinator company becomes a lifestyle company, can you guys still profit from the business?
PG: No. I mean there’s got to be an exit for it, equity holders to get any money. I mean, maybe — maybe in the future there is some model where companies pay dividends instead of an exit that like we’ve never tried to get anybody to do that, and we don’t have any real hopes about it. So, no.
I pulled it from http://webcache.googleusercontent.com/search?q=cache:Qp7sHPmQyLMJ:mixergy.com/y-combinator-paul-graham/+site:mixergy.com+paul+graham+mixergy+transcript&cd=2&hl=en&ct=clnk&gl=us http://webcache.googleusercontent.com/search?q=cache:Qp7sHPm...
because http://mixergy.com/y-combinator-paul-graham/ http://mixergy.com/y-combinator-paul-graham/ is just giving me a white box and a gray background.