This has the sense of a ploy to spur on companies to buyout for huge amounts - furthering YC's interests. Also suggests VCs should take on more risk - furtheri

This has the sense of a ploy to spur on companies to buyout for huge amounts - furthering YC's interests. Also suggests VCs should take on more risk - furthering YC's interests. Urges entrepreneurs to hold out even longer - furthering YC's interests (if these entrepreneurs are in YC). I don't disagree this message - but the motivation for writing this seems extremely transparent. Not every buyout makes sense. Buying out Facebook for the valuation given to them roughly by the MSFT investment looks ridiculous considering Facebook's inability to monetize their traffic. VCs fundamentally are trying to be risk adverse in a high risk environment. They all want to have a slightly higher success rate than average and do great. Entrepreneurs always will hit a point where it makes sense to sell out and get rid of the risk on their end of holding on. If you have a portfolio of 100 companies, it makes sense to want each to hold out as long as possible. If you have one company you own a major stake of, it makes sense at a much lower value to liquidate.