51–60 of 184 posts
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It’s $500k now.
No, it’s still 125k for 7%, with an option for an additional 375k on an uncapped safe. Source: https://www.ycombinator.com/deal/
“Both investments happen at the same time; they are not contingent on any milestones.”
So from a founder perspective, that’s very friendly.
The emphasis on "downturn" concerns me. Aren't reputed firms like YC supposed to look at a 10+ year horizon? If this is true, it indicates that earlier investments were based on the market than the fundamentals of the founding team, market, and product.
But I think the bigger point is that venture capital funding is really drying up and investors aren't investing as much. A lot of the market is basically "taking a loan to cover a loan that covers a loan.." and the market is no longer giving out loans as easily due to higher interest rates.
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>and then list it on the stock market for the retail traders to hold their bags. Out of 3,840 startups funded by YC, fifteen have gone public: https://www.ycombinator.com/companies
That's 0.39%, not sure if this is typical but seems pretty low to me. Anything we can learn from this number, or it's simply just a number?
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That's 0.39%, not sure if this is typical but seems pretty low to me. Anything we can learn from this number, or it's simply just a number?
It's widely discussed in the industry. I like the Matt Levine hypothesis titled "Private markets are the new public markets", briefly stated: that for a while there was a lot more money available for private companies than there used to be, thanks to ZIRP and megafunds like Softbank VF, and also more regulations and disclosures imposed on public companies, which on net makes it more attractive to stay private and not…
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You have the luxury of patience when it's your own money. YC has been raising outside capital for several years (a decade?) now. As soon as you're investing other people's money you're at the mercy of other people's willingness to invest.
They could sell some of their holdings in these huge companies they have 7% of but basically they are saying everything is screwed right now and they expect a decade or more of depression.
The emphasis on "downturn" concerns me. Aren't reputed firms like YC supposed to look at a 10+ year horizon? If this is true, it indicates that earlier investments were based on the market than the fundamentals of the founding team, market, and product.
Earlier quoted context omitted.
They could sell some of their holdings in these huge companies they have 7% of but basically they are saying everything is screwed right now and they expect a decade or more of depression.
I don't read it that way. There is reduced funding available now . So the current batch is smaller. They are still thinking of more than 10 year horizon to mature opportunities but the funds available for that runway is smaller. Hence the small batch. That is my read any way. The depression may be over in 2 years (say), but that does nothing for investor sentiment and available cash right now.