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If Stripe is still private, how does YC get its ROI?
by HeyLaughingBoy 3y ago
If Stripe is still private, how does YC get its ROI?
- ceejayoz 3y agoLater rounds can buy out early rounds. For example: https://www.bloomberg.com/news/articles/2024-02-28/stripe-strikes-employee-share-deal-valuing-firm-at-65-billion https://www.bloomberg.com/news/articles/2024-02-28/stripe-st... Some VCs are OK with long-term ROIs, too.
- ergocoder 3y agoWhen VCs don't invest, it's mostly due to the fact that they don't think the ROI would be that great. However, VCs will come up with irrelevant excuses because they don't want to go into a long debate. The long-term and short-term nature of it is highly dynamic. If the investment is going to 2x-10x, they will make a bet with some amount of money.
- Quinner 3y agoNot sure about this case specifically, but its possible to sell shares in a private company (with some restrictions), and for companies like Stripe that have very high valuations its not that hard to get liquidity.