3 ms·

YC is much closer to an index fund than typical VC (or even other accelerators - due to YC's much larger scale), but there's a big difference as index funds don

YC is much closer to an index fund than typical VC (or even other accelerators - due to YC's much larger scale), but there's a big difference as index funds don't use any "gut instincts" - the criteria for a stock to be included in an index are fixed rules. A better (though less succinct) analogy for YC in the public markets would be an "actively managed mutual fund investing in a broad range of early stage companies with a long-term time horizon."

erubin 8y ago
with the technical exception of a new breed of `index funds' that happen to follow their own proprietary indices!
tomnipotent 8y ago
> as index funds don't use any "gut instincts" Of course fund managers rely on this when relying on computer-assissted recommendations when deciding how much of each stock to buy. If you don't think someone opinion & gut instinct is involved, you're going to be disappointed.