3 ms·

Is there any way of knowing how much YC made on the IPO? Ballpark/order of magnitude? Always curious to see what a win looks like from the accelerator side.

jedberg 6y ago
Not sure about YC, but Andreessen-Horowitz seems to have made about $14B from their $2M investment? Assuming I'm reading this SEC filing correctly. And Union Square Ventures appears to have turned $13M into about $7B? https://www.sec.gov/Archives/edgar/data/1679788/000162828021003168/coinbaseglobalincs-1.htm https://www.sec.gov/Archives/edgar/data/1679788/000162828021...
- ignoramous 6y ago
  Mental numbers.
- rawtxapp 6y ago
  I believe this is the proof why VCs chase those 10x numbers, I bet that that single investment has paid off all their failed investments and then some.
  - jedberg 6y ago
    Most likely this single investment made their fund.
- rp1229 6y ago
  If they wanted to realize those gains, they would have to sell right? causing the price to plummet?
  - jedberg 6y ago
    Yes. As far as I can tell those two firms hold 21% of the stock. But that's true of pretty much any IPO. All the biggest winners are winners mostly on paper, they can't really dump it all on day one. My understanding is that there are firms that specialize in buying up assets from VCs that need to close out their funds, so things like this or private companies that they've held for 10+ years already, stuff like that. There are probably ways to sell all the shares from one entity to another all at once that won't tank the shares, but I'm not totally sure.
ryanmercer 6y ago
YC currently takes 7% when they invest https://www.ycombinator.com/deal/ https://www.ycombinator.com/deal/ I know, at a minimum, the dollar amount has changed over the years (gone up) but I'm not certain if the percentage has changed. So if they can realize all of that at current price, a lot. Enough to keep running for many years.

jedberg 6y ago

Not sure about YC, but Andreessen-Horowitz seems to have made about $14B from their $2M investment? Assuming I'm reading this SEC filing correctly. And Union Square Ventures appears to have turned $13M into about $7B? https://www.sec.gov/Archives/edgar/data/1679788/000162828021003168/coinbaseglobalincs-1.htm https://www.sec.gov/Archives/edgar/data/1679788/000162828021...

ignoramous 6y ago
Mental numbers.
rawtxapp 6y ago
I believe this is the proof why VCs chase those 10x numbers, I bet that that single investment has paid off all their failed investments and then some.
- jedberg 6y ago
  Most likely this single investment made their fund.
rp1229 6y ago
If they wanted to realize those gains, they would have to sell right? causing the price to plummet?
- jedberg 6y ago
  Yes. As far as I can tell those two firms hold 21% of the stock. But that's true of pretty much any IPO. All the biggest winners are winners mostly on paper, they can't really dump it all on day one. My understanding is that there are firms that specialize in buying up assets from VCs that need to close out their funds, so things like this or private companies that they've held for 10+ years already, stuff like that. There are probably ways to sell all the shares from one entity to another all at once that won't tank the shares, but I'm not totally sure.

ryanmercer 6y ago

YC currently takes 7% when they invest https://www.ycombinator.com/deal/ https://www.ycombinator.com/deal/ I know, at a minimum, the dollar amount has changed over the years (gone up) but I'm not certain if the percentage has changed. So if they can realize all of that at current price, a lot. Enough to keep running for many years.