YC is different. Consider: "YC’s terms, which see it investing $150,000 in exchange for 7 percent of each company — a stake that it can maintain throughout the

YC is different. Consider: "YC’s terms, which see it investing $150,000 in exchange for 7 percent of each company — a stake that it can maintain throughout the company’s life it it so chooses, per its pact with its founders." If this is true, it can afford to do different things. Picking the wrong company does not matter. Picking the right company matters a lot. In other words, false negatives are much worse than false positives. With that type of structure, the more they take on the better. Sam's philosophy -- from his talks and such, I don't know him personally -- seems to align perfectly with this reward structure. He has grown it in the right direction. Now, the hit rate will necessarily be lower, and that might hurt another organization but because of their unique structure, I think it helps YC.