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"Maybe PG just expects these startups to build a quick product and sell off to a Google, Facebook, Zynga etc." YC makes very little on quick-flip startups. Co
by webwright 15y ago
"Maybe PG just expects these startups to build a quick product and sell off to a Google, Facebook, Zynga etc."
YC makes very little on quick-flip startups.
Count the number of YC partners and the number of LPs they have, do some napkin math on their expenses (weekly dinners for 150+, funding 120 startups per year, presumably moderate salaries for partners and staff, legal bills, flying hundreds of people to SV for interviews every 6 months, etc), and tell me how needle-moving it is for them to turn a $20k investment into $240k (before taxes)... Which is exactly what they'd get for a $4M exit.
AFAIK, YC always advises founders who have an early flip opportunity to stick it out (though it's supportive if the founders don't want to do so).