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Makes YC look like a Sequoia portfolio company, which it isn't... Hmm. Or is it?
by aditya 18y ago
Makes YC look like a Sequoia portfolio company, which it isn't... Hmm.
Or is it?
- smanek 18y agoOf course it is. Sequoia gave YC money in return for a part ownership of YC.
- pg 18y agoThat's not true. The investors get a percentage of the returns from the startups funded with that money. When the money runs out, the deal ends. This is how all funds work. A university that invests in a fund managed by VCs doesn't get part ownership of the VC firm. They get part of the returns from the startups funded with the specific pool of money they contributed to.
- smanek 18y agoI stand corrected
- jasonlbaptiste 18y agoSequoia is acting like an LP (usually universities, pension funds, high net worth individuals,etc.) in a typical venture fund is the way I'm looking at it.