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That $45.2m figure was not the average valuation of all cos we've funded, but the average valuation of companies with known valuations (either by raising an equ
by pg 14y ago
That $45.2m figure was not the average valuation of all cos we've funded, but the average valuation of companies with known valuations (either by raising an equity round, being acquired, or dying, in which case the value is 0).
I realize that unless something is changing, the more recent companies that don't have fixed valuations yet should have the same sort of distribution. But that quote in Wikipedia still makes me a little uncomfortable, because it's not strictly correct.
- eldude 14y agoJust a quick calculation leaves: $45M * 380 * 7% = $1.2B split 4 ways? Congratulations for creating so much value and giving so many of us a great community.
- pg 14y agoI know you mean well, but this sort of calculation makes my hair stand on end. I'd rather leave unhatched chickens uncounted. It also doesn't account for dilution; that 7% should be more like 2-3%. Plus we had LPs for a while, who will get some of the returns. (Also we've funded 511 startups, not 380.)
- marcamillion 14y agoDoes this mean there are no more LPs? Did all of that stop with the latest changes with the scaling back of the guaranteed convertible note from Yuri Milner?
- pg 14y agoThere are no more LPs, but that wasn't connected to the switch from the Start Fund to the YC VC Program. We finished investing the last fund midway through the summer 2012 batch.
- hollerith 14y agoAlthough what you write is not false, it is little more than a distraction from the much more important fact that the $45.2m figure comes from Wikipedia, which in turn got it from a NYT article written in February of 2006. (I am not saying or implying that the distraction was intentional on your part.)