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Ask PG: Does YC have any plans to invest in YC companies future rounds?
Seems like the YC 7% ownership after a series A/B/C would get diluted heavily. Often times, Angel investors do the Angel round, just for the option/opportunity to invest larger amounts in future rounds. Would have been awesome for you guys, if you put in larger amounts in Heroku, AirBnB, and Dropbox future rounds.
Do you ever think YC will invest in companies later rounds after the initial 40K and 7%? Though, I can see this being problematic, as you would be 'picking' favorites.
- pg 15y agoNo, we don't invest in later rounds. Partly because you can't do that without harming the reputations of the companies you don't invest in, and partly because we'd rather fund a new startup than put more into an existing one. I.e. we'd rather expand breadthwise than depthwise.
- nodesocket 15y agoMakes sense, do you have an average figure of the companies that have exited, what the YC percentage ownership is when the exit event occurs?
- pg 15y agoWe assume that in the biggest exits (which dominate the returns) we'll be about 3x diluted.