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This seems like a win for everybody: Infochimps gets to build its business, YC-funded founders get to exit profitably and move onto another project, Paul Graham
by citizenkeys 16y ago
This seems like a win for everybody: Infochimps gets to build its business, YC-funded founders get to exit profitably and move onto another project, Paul Graham & Co. claim another successful start-up, and YCombinator's share of the buyout money can fund more start-ups.
- ig1 16y agoI'm not sure YC made money out of this one, certainly not by angel standards. Angels invest with the aim of a 10x exit, because that's what they need from the successes to cover the cost of the failures (probably less in YC's case as they have a lower failure rate). 15k at 6% is a 250k valuation, Infochimps just took 1.2 million of investment themselves, so it's questionable whether they got a 1x multiple, a 4x+ multiple is out of the question. Infochimps don't have that kind of money.