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I have a question for pg, if he is reading this. You said that about 70% of the companies exit YC with funding or do not need further funding because they are already bringing in money. Do you usually return your investment at this point, or do you wait until a later VC round, or do you generally wait to the point where the founders cash out to return your investment?
And to think Paul Graham initially resisted investing. He seems to know this stuff so well it seems natural.
That was nice. Although, the interviewer just talked too much. A good journalist knows how to get out of the way. I have a question for pg, if he is reading this. You said that about 70% of the companies exit YC with funding or do not need further funding because they are already bringing in money. Do you usually return your investment at this point, or do you wait until a later VC round, or do you generally wait to…
And to think Paul Graham initially resisted investing. He seems to know this stuff so well it seems natural.
Well, I've been doing it full-time for 5 years now. And at the scale we operate on, 5 years is a lot of data. 172 startups is several times the number a VC partner would deal with in his career.
I wish VCs would take note.
That was nice. Although, the interviewer just talked too much. A good journalist knows how to get out of the way. I have a question for pg, if he is reading this. You said that about 70% of the companies exit YC with funding or do not need further funding because they are already bringing in money. Do you usually return your investment at this point, or do you wait until a later VC round, or do you generally wait to…
Like most investors, we wouldn't normally get any return till what in the business is called a "liquidity event," meaning either an acquisition or an IPO.
Earlier quoted context omitted.
Like most investors, we wouldn't normally get any return till what in the business is called a "liquidity event," meaning either an acquisition or an IPO.
Dividends? Or a clear preference for 100% reinvestment in growth and a bigger liquidity event?
Earlier quoted context omitted.
Dividends? Or a clear preference for 100% reinvestment in growth and a bigger liquidity event?
Technology startups have never paid dividends. There are probably multiple reasons why not. There might be some way to tweak dividends to make them work for startups, but I know so little about that sort of thing that I wouldn't want to speculate.
As an aside, I did invest in one web startup which took the unusual step of returning the entire first round investment by way of dividends prior to an IPO. Very peculiar and not US based, so I figure your assertion holds.
That was nice. Although, the interviewer just talked too much. A good journalist knows how to get out of the way. I have a question for pg, if he is reading this. You said that about 70% of the companies exit YC with funding or do not need further funding because they are already bringing in money. Do you usually return your investment at this point, or do you wait until a later VC round, or do you generally wait to…
Like most investors, we wouldn't normally get any return till what in the business is called a "liquidity event," meaning either an acquisition or an IPO.
And to think Paul Graham initially resisted investing. He seems to know this stuff so well it seems natural.
Well, I've been doing it full-time for 5 years now. And at the scale we operate on, 5 years is a lot of data. 172 startups is several times the number a VC partner would deal with in his career.
It's funny how much of life is just about putting in the hours. Maybe we'd like to think it's about talent or brainpower, but data wins pretty much every time.