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Looks like there's a useful built-in selection bias. YC commits itself to investing in future rounds, but only good companies will be able to raise future round
by briholt 11y ago
Looks like there's a useful built-in selection bias. YC commits itself to investing in future rounds, but only good companies will be able to raise future rounds, so they probably won't get stuck doubling down on too many failing companies.
- _delirium 11y ago> only good companies will be able to raise future rounds Given the rather poor returns of the VC sector overall, I'm not sure you can make this assumption without more qualification.
- briholt 11y agoFair enough: * ...only not-completely-screwed-up-trainwrecks will raise future rounds...
- namenotrequired 11y agoMaybe the inverted statement is more appropriate? ... companies that aren't able to raise further rounds will fail...