3 ms·
There's actually a way of calculating how good the YC terms are. Basically what you want as an entrepreneur is to maximise your exit. The exit sum for a founde
by mixmax 18y ago
There's actually a way of calculating how good the YC terms are.
Basically what you want as an entrepreneur is to maximise your exit. The exit sum for a founder can be calculated as %ownership X salesprice. So if you add up all the founders that have exited, and see how much money they made on average, and then compensate for the companies that didn't make it you will come up with the average salesprice that a founder will get paid when his copmany is sold. Since YC has a track record by now you can simply do the calculation for YC and your seedfunding outfit of choice and see which gives a better payour for the average founder.
There are a lot of nuances of course, maybe there's an extraordinarily large exit, some incubators hold on to companies longer, you can only estimate companies that heve either been sold or gone bust, etc. but it will give a pretty good rough idea.