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Great to see them involved. I'm curious about this model... At what point does the overhead of following so many companies become prohibitive relative to the
by mathattack 13y ago
Great to see them involved. I'm curious about this model... At what point does the overhead of following so many companies become prohibitive relative to the small amount invested? I suspect this could be why Milner left.
I don't have much (any) data on this, and no professional stake in this. I'm just fascinated by the YC model in general, and by a way of "buying the market" for emerging companies. (The closest thing to an S&P for startups) That, and I'm tired of arguing about unions on the other thread.
- karamazov 13y agoThe YCVC investments are a fire-and-forget portfolio investment; VC's usually don't follow the companies directly unless they put in additional money.
- mathattack 13y agoI see - thanks! So it really is like an index, but of options. One or two will hit, and when they do, it's time to pay attention. I've heard stories of universities that seed firms with a Fire-and-Forget mindset, and then finding out after the fact that someone has a bunch of valuable contracts in a filing cabinet. off-topic - I'm a fan of what your company is doing.
- pbreit 13y agoI doubt the "forget" part is as strong as your description implies. Instead they are "in" on a heavily pre-vetted set of companies with very little work. And then begin on Day 2 (probably Day 1, actually) figuring out how involved to get, likely getting meaningfully involved in favorites.
- deleted 13y ago[deleted]
- karamazov 13y agoThank you! =)
- midas007 13y agohttp://ycombinator.com/ycvc.html http://ycombinator.com/ycvc.html
- wellboy 13y agoCurious as to why he left, since each of his $80,000 investment is a "guaranteed" 30x return, if we take his investment at a $800,000 valuation and the average valuation of a YC startup of $23.7M.
- pbreit 13y agoAren't YCVC investments safes (nee notes) which have recently been averaging around $5m caps? 4-5x still pretty good.
- wellboy 13y agoYeah, 50 startups * $80,000 * 5 = $22M per batch return with "no" work involved. But this might be an annoyance considering him aiming for $300M return/year or so in his later-stage fund.
- outericky 13y agoYuri wasn't the sole investor in the YCVC notes. At least not each batch.