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> This likely means YC gets about $3-5million out of the deal, funding even more startups in the future. :) I'm fairly sure that YC doesn't recycle the money o

by pinkton 15y ago

> This likely means YC gets about $3-5million out of the deal, funding even more startups in the future. :) I'm fairly sure that YC doesn't recycle the money off from wins, but instead returns it to their investors. YC is a for-profit fund that uses other people's money to give about $20k cash and $20k of training in exchange for 6% of their company.

YuriNiyazov 15y ago
do you have evidence? traditional vc funds don't recycle their money, but yc is not a traditional vc fund
- pinkton 15y ago
  YC raised an $8.25m fund in 2010, and the investors care about IRR and liquidity.
  - rms 15y ago
    OMGpop (known as I'm In Like With You at the time) was a pre-fund investment. Also, I expect that the limited partners of YC have given them unusually flexible and favorable terms.
jedc 15y ago
When I wrote that I didn't mean it in a strict accounting sense, but in a holistic sense. ie, I don't see PG and Jessica buying a yacht with their YC earnings, but I can see them plowing the earnings back into the program. :)