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>For the founders, is the YC network going to stay worth 7% of every company that joins it? That 7% is not at all a single number. Effectively, it is 7% of the
by vram22 6y ago
>For the founders, is the YC network going to stay worth 7% of every company that joins it?
That 7% is not at all a single number. Effectively, it is 7% of the valuation of each company in YC, which can vary from very low, zero or maybe even negative, to Dropbox-like highs.
- hctaw 6y agoGP is talking about the equity cost to join the YC network, not how much money YC is able to get for that equity way down the line. The question is whether increased participation will dilute the pool of VCs who come to demo day with their checkbooks, or if the network effects will scale. I don't think anyone knows the answer to that.
- vram22 6y agoYes, I was quite aware of, and was referring to, that (the first clause of your first sentence), but also something more. Maybe I did not make it clear. Will try to restate it better tomorrow.
- vram22 6y agoActually, now I think that your GP's question itself (to which I replied above) is not very clear or meaningful, or at least not clearly worded. Mea culpa, maybe. So won't add more.