Taking this to the logical extreme: in the "YC goes public" scenario, go ahead and just invest in a truly market-wide index fund. The problem with this directio

Taking this to the logical extreme: in the "YC goes public" scenario, go ahead and just invest in a truly market-wide index fund. The problem with this direction is that as you diversify away your exposure to downside, you also diversify away your exposure to upside. Because you get a smaller slice of YC's returns/growth and a larger slice of a bunch of other, presumably worse performing, businesses.