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Because he is leaving Facebook at the same time! http://venturebeat.com/2010/11/12/y-combinator-paul-graham-harj-taggar/ http://venturebeat.com/2010/11/12/y-com

• maxwell 16y ago
  Y Combinator is the next Facebook.
  • pg 16y ago
    It's nice of you to say that, but it's impossible. The portfolio effect means that no investment firm ever ends up as big as the most successful individual startups. Nothing beats putting all your eggs in one basket, and having that basket turn out to be an outlier.
    • stevenj 16y ago
      What about Berkshire Hathaway? Though, it's a pretty focused portfolio. Perhaps YC will acquire companies in the future?
      • pg 16y ago
        BH is more like a conglomerate than an investment firm. They're just a super-disciplined conglomerate, unlike the random ones that gave the term such a bad name in the 1970s.
        • dmv 16y ago
          More to the point, Berkshire Hathaway itself had only 19 employees as of the 2006 letter.
    • VictorHo 16y ago
      This argument makes sense, but aren't many large PE shops and Hedge Funds (which either acquire large companies whole, or make many small investments in thousands of companies) a counter example to this? Many have $5B+ valuations, often limited intentionally by a desire not to expand beyond 40-50 investment professionals. Seems like there is no inherent law preventing a portfolio manager from becoming bigger than any single item in his portfolio.
  • siddhant 16y ago
    ... or in the process of helping build the next Facebook.
  • lylejohnson 16y ago
    Is it too soon to sign up for our custom YC email addresses?