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The purpose of VC’s were never to fund companies until they become profitable, it’s the find the “bigger fool”. Occasionally it’s the public market… https://m
by raw_anon_1111 9mo ago
The purpose of VC’s were never to fund companies until they become profitable, it’s the find the “bigger fool”.
Occasionally it’s the public market…
https://medium.com/@Arakunrin/the-post-ipo-performance-of-y-combinator-companies-a-mixed-bag-of-success-and-struggle-58e9a4006f01 https://medium.com/@Arakunrin/the-post-ipo-performance-of-y-...
Most often for successful exits, it’s to get acquired and shut down the original product with a “Our Amazing Journey” blog post.
- no_wizard 9mo agoThat chart is telling about the durability of this business, but do we actually know the precise point at which YCombinator as an entity sold out? For instance, I know Coinbase may be down -22% from the IPO price, but that doesn't mean YCombinator lost money nor made very little. If they, for instance, sold off during the first few days of the IPO they would have made out quite well. There's also the whole question of how much money did YCombinator put in vs what they got out. Without knowing this, about all the chart tells me is YCombinator is not a predicated on building exceedingly durable businesses, but it doesn't mean they lost money on any of these investments either.
- raw_anon_1111 9mo agoYC isn’t the “bigger fool”, their business model is great for them. Of course they made money at IPO. They don’t care about durable businesses. More than likely they sold at IPO.
- no_wizard 9mo agoI realize, but that's my entire point: the durability of the business as represented by these valuations says nothing meaningful about YCombinator startups other than they aren't building alot of highly durable businesses.