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In statistics, taking average on any distribution is perfectly valid metric that give you an expected value - even on power curve. For example, let's say you ro
by sytelus 12y ago
In statistics, taking average on any distribution is perfectly valid metric that give you an expected value - even on power curve. For example, let's say you roll a dice and get a million dollar if you get 6 but nothing otherwise. Then your expected return is $1M divided by 6.
I was always interested this number: Sum the personal networth increase of each founder and divide that by number of founder years. That would give expected networth gain per year for being YC founder. Due to outliers, I think it would be significant number and actually makes a case for being YC founder.
One another advantage in calculating this number is that you can compare it with other accelerators (provided you have data for large enough number of founders for each). This would be interesting for rank accelerators from founder perspective (as opposed to investor perspective).