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If YC ever got to the point where it needed donation from alumni to survive it would mean it has failed. That is if it got to the point of no-longer graduating
by ig1 13y ago
If YC ever got to the point where it needed donation from alumni to survive it would mean it has failed. That is if it got to the point of no-longer graduating successful companies which generate heaps of money for them, then there would be no purpose in keeping it going.
- samfisher83 13y agoI don't believe that is his point. Harvard could become a for profit school charge some obscene tuition and it could make money, because there is so much demand for a harvard degree. It isn't about just surviving. If the YC crew is making a lot of money more power to them.
- jrkelly 13y agoI think the model of taking a piece of alumni future income (via ownership in their startups) is a competitive advantage of YC relative to places like MIT. It's a forced donation policy. Going to a non-profit doesn't stop this. NPs obviously can take in tons of revenue - a NP model just encourages alumni to give more back (time/connections as well as $). I wouldn't feel the same sense of wanting to give back to MIT if the school basically existed to increase the wealth of the school president. YC is very different from a typical VC fund, it would be sad for it to die just because (like every fund) eventually it'll have a bad run. It could be more stable than that since it is also providing value to it's alumni that they'd happily pay back.