2 ms·

Throw us a bone Paul

• pg 20y ago
  We're slightly profitable. Probably not as profitable as all the people copying us think. It's hard to predict how much we'll make long-term. We won't make much from the startups that get bought early. If a startup gets bought for $5m after taking an angel round that dilutes us down to 4%, that's only $183k (200 - 17.5) pretax. We won't be buying Gulfstreams on those deals, no matter how many of them there are. For us to make a lot of money, we'd have to invest in companies that scored very big, and we have no idea yet how many will go through YC. The data is moderately encouraging so far. As well as Loopt there are two other startups funded by big VCs that haven't launched yet. But there's still not enough data to see trends. Fortunately, unlike a VC firm, we don't need to make a lot of money. The main reason we're doing YC is that it's a cool hack. It makes it even cooler that we might make some money out of it, but that's not essential. We just need to make enough not to have to stop, and we'll probably manage that.
  • dawie 20y ago
    I guess it all comes down to "Doing what you Love", and thanks for the bone.