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So many great companies and so many early exits. Great for the VC's and angels - bad for the founders and early employees. And the users. Imagine if Heroku, red

by wilfra 15y ago

So many great companies and so many early exits. Great for the VC's and angels - bad for the founders and early employees. And the users. Imagine if Heroku, reddit and others had stayed independent. Facebook got this part right. Reject buyout offers and use them to raise capital at ever increasing obscene valuations - and build your product exactly as you want.

ootachi 15y ago
Founders often don't have a choice as to whether to accept buyout offers. In the case of OMGPOP, which had received a ton of VC funding and struggled for years until finally finding some success, I can definitely see why VCs would want to force a sale. (In fact, I wouldn't be surprised if VCs generally think that "make games for iOS" is not a business model that is capable of the kind of returns they need anymore, and they want to avoid taking further risk on that model—hence they forced the sale.)
abuzzooz 15y ago
There are always two sides for each story. You hear about a lot of successful companies that rejected a buyout, only to die in obscurity. I guess it all depends on the shareholders and what they want to do. Sometimes it's good to take home a good chunk of profit and look elsewhere.
andywood 15y ago
All this says to me is that YC does not directly fund Googles and Facebooks. This is still very good for the founders. They can take their exit money and self-fund whatever they want.
- justin 15y ago
  The biggest companies in the YC portfolio are independent and getting bigger all the time. It still remains to be seen whether a Facebook or Google will come out of YC.
  - deleted 15y ago
    [deleted]
- earbitscom 15y ago
  Google and Facebook are two companies out of many thousands (if not millions) of startups. The odds of anybody that big coming out of anywhere are microscopic. That being said, Dropbox and AirBNB are massive and very young companies. Between those two and the 150+ startups funded in the past 18 months, saying there will be no world-changing startups out of YC is premature.
joejohnson 15y ago
Facebook rejecting buyout offers from larger companies not currently in the (at the time rather small) social space is not the same as OMGPOP rejecting a lucrative offer from a major player in a saturated market.
kooshball 15y ago
> Great for the VC's and angels - bad for the founders and early employees. Actually PG has publicly stated that it's almost never good for YC for a startup to exit early. I can't seem to find the comment though.

by wilfra 15y ago

ootachi 15y ago

Founders often don't have a choice as to whether to accept buyout offers. In the case of OMGPOP, which had received a ton of VC funding and struggled for years until finally finding some success, I can definitely see why VCs would want to force a sale. (In fact, I wouldn't be surprised if VCs generally think that "make games for iOS" is not a business model that is capable of the kind of returns they need anymore, and they want to avoid taking further risk on that model—hence they forced the sale.)

abuzzooz 15y ago

There are always two sides for each story. You hear about a lot of successful companies that rejected a buyout, only to die in obscurity. I guess it all depends on the shareholders and what they want to do. Sometimes it's good to take home a good chunk of profit and look elsewhere.

andywood 15y ago

All this says to me is that YC does not directly fund Googles and Facebooks. This is still very good for the founders. They can take their exit money and self-fund whatever they want.

justin 15y ago
The biggest companies in the YC portfolio are independent and getting bigger all the time. It still remains to be seen whether a Facebook or Google will come out of YC.
- deleted 15y ago
  [deleted]
earbitscom 15y ago
Google and Facebook are two companies out of many thousands (if not millions) of startups. The odds of anybody that big coming out of anywhere are microscopic. That being said, Dropbox and AirBNB are massive and very young companies. Between those two and the 150+ startups funded in the past 18 months, saying there will be no world-changing startups out of YC is premature.

joejohnson 15y ago

Facebook rejecting buyout offers from larger companies not currently in the (at the time rather small) social space is not the same as OMGPOP rejecting a lucrative offer from a major player in a saturated market.

kooshball 15y ago

> Great for the VC's and angels - bad for the founders and early employees. Actually PG has publicly stated that it's almost never good for YC for a startup to exit early. I can't seem to find the comment though.