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They're probably better deals than if the companies went under. I think his point is that the possibility of an acquihire removes a good deal of risk.
by j_baker 14y ago
They're probably better deals than if the companies went under. I think his point is that the possibility of an acquihire removes a good deal of risk.
- pg 14y agoHR acquisitions have such an insignificant effect on returns that they're indistinguishable from failures.
- pmjordan 14y agoThis is from the point of view of an outsider, but I get the impression that YC's operational costs are substantial at this point. Aquihires might look good based on cash valuation of YC investments, but that hides the investment of intangibles and overhead, which I could easily imagine to dwarf the cash injection. Additionally, a set of founders tied up in a big company are probably less able to contribute to the alumni network.