Paul Graham: Some VCs Push For Large Rounds, Even When Startups Don't Need Them
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Re: Paul Graham: Some VCs Push For Large Rounds, Even When Startups Don't Need Them
#2"Graham also released some metrics on Y Combinator: it has 564 startups total. Of the 285 that have valuations, the total valuation of the companies is $11.6 billion."
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Re: Paul Graham: Some VCs Push For Large Rounds, Even When Startups Don't Need Them
#3"Graham also released some metrics on Y Combinator: it has 564 startups total. Of the 285 that have valuations, the total valuation of the companies is $11.6 billion." !
I wonder which companies are skewing that the most, anybody have a list of the top Y Combinator companies?
Obviously the average of $46 million doesn't provide a clear picture at all.
Re: Paul Graham: Some VCs Push For Large Rounds, Even When Startups Don't Need Them
#4"Graham also released some metrics on Y Combinator: it has 564 startups total. Of the 285 that have valuations, the total valuation of the companies is $11.6 billion." !
I wonder which companies are skewing that the most, anybody have a list of the top Y Combinator companies? Obviously the average of $46 million doesn't provide a clear picture at all.
If memory serves, I believe that AirBnB and Dropbox represent about half of that.
Re: Paul Graham: Some VCs Push For Large Rounds, Even When Startups Don't Need Them
#5"Graham also released some metrics on Y Combinator: it has 564 startups total. Of the 285 that have valuations, the total valuation of the companies is $11.6 billion." !
I wonder which companies are skewing that the most, anybody have a list of the top Y Combinator companies? Obviously the average of $46 million doesn't provide a clear picture at all.
Just taking out Dropbox and Airbnb, the average for the rest already drops quite a bit. With Dropbox at more than $4bil [1] and Airbnb at $2.5bil [2], that leaves the remaining 283 at about $5bil total, or $17.6mil each. Taking out others like Weebly would drop it further.
[1] - http://www.forbes.com/sites/quora/2013/02/07/why-is-dropbox-...
[2] - http://www.bloomberg.com/news/2012-10-19/airbnb-said-to-be-r...
Re: Paul Graham: Some VCs Push For Large Rounds, Even When Startups Don't Need Them
#6This is essentially a shallower version of "The New Funding Landscape" (http://www.paulgraham.com/superangels.html), which was published in 2010.
Re: Paul Graham: Some VCs Push For Large Rounds, Even When Startups Don't Need Them
#7Earlier quoted context omitted.
I wonder which companies are skewing that the most, anybody have a list of the top Y Combinator companies? Obviously the average of $46 million doesn't provide a clear picture at all.
Just taking out Dropbox and Airbnb, the average for the rest already drops quite a bit. With Dropbox at more than $4bil [1] and Airbnb at $2.5bil [2], that leaves the remaining 283 at about $5bil total, or $17.6mil each. Taking out others like Weebly would drop it further. [1] - http://www.forbes.com/sites/quora/2013/02/07/why-is-dropbox-... [2] - http://www.bloomberg.com/news/2012-10-19/airbnb-said-to-be-r...
So what you're saying is that if you take all of the successful companies out of an investor's portfolio, that portfolio will have a lower value.
Re: Paul Graham: Some VCs Push For Large Rounds, Even When Startups Don't Need Them
#8Earlier quoted context omitted.
Just taking out Dropbox and Airbnb, the average for the rest already drops quite a bit. With Dropbox at more than $4bil [1] and Airbnb at $2.5bil [2], that leaves the remaining 283 at about $5bil total, or $17.6mil each. Taking out others like Weebly would drop it further. [1] - http://www.forbes.com/sites/quora/2013/02/07/why-is-dropbox-... [2] - http://www.bloomberg.com/news/2012-10-19/airbnb-said-to-be-r...
So what you're saying is that if you take all of the successful companies out of an investor's portfolio, that portfolio will have a lower value.
Well I think more precisely, he's implying if you take out the few heavy hitters, then the value drops precipitously.
Re: Paul Graham: Some VCs Push For Large Rounds, Even When Startups Don't Need Them
#9 "Graham suggests that if one reputable venture firm were
to break this non-spoken 20% Series A agreement, the best
startups would instantly flock to that firm. “It’s going
to happen,” Graham says. “You might as well anticipate it
and look bold.”"
Any plans on using the collective attractiveness of YC to help push that 20% stake down? e.g. would you talk to a lot of the startups in the current batch about collectively sticking to a lower percentage like 15% to get the ball rolling in the direction of the new funding landscape?
It seems like YC companies keep raising larger and larger rounds, oftentimes more money than they really need for 18 months of runway. With that in mind, the logical thing to do is to collectively help them give up less equity to get back to 18 months of runway.
Re: Paul Graham: Some VCs Push For Large Rounds, Even When Startups Don't Need Them
#10Earlier quoted context omitted.
So what you're saying is that if you take all of the successful companies out of an investor's portfolio, that portfolio will have a lower value.
Well I think more precisely, he's implying if you take out the few heavy hitters, then the value drops precipitously.
Or stated even more precisely, the mean and median are very different :)