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i dunno how people say VCs have a return of only 9% year when Ycombinator is absolutely crushing that even with a high failure rate. AirBNB, box, dropbox, coinbase, etc.

Paul stumbled on an absolute goldmine by just giving a bunch of promising companies with good founders 10k in exchange for a decent portion of equity and then some of these companies being worth billions.

NOw you know what those homes and are so expensive in Palo Also and elsehwre, You got of these guys making fortunes, and that money tricked down everywhere.



> i dunno how people say VCs have a return of only 9% year when Ycombinator is absolutely crushing that even with a high failure rate

YC is a massive outlier and they have insanely good deal flow because of their brand.


*and the people running it. The brand comes from the success of the companies which comes, in large part, because of the partners and network.

You won't find a better group of truly qualified, highly accomplished people giving advice to startups, holding talks for cohorts, etc. in any other accelerator anywhere, period.


There are a lot of VCs out there. Some do well, some don't.

But remember that unlike the stock market, investing in a VC means locking up your money for 10 years. Slightly beating the market is not worth the liquidity loss, you have to do a good bit better.


Yeah I get it, assuming I did it (which is a big, big if, I don't really trust my judgement to pick winning companies or there being some legal jiggery pokery or bad luck that makes me get nothing or almost nothing back), it would be something I do in addition to buying crypto/gold/silver and putting money into a 401k.


> by just giving a bunch of promising companies with

Selection bias. There are a heap of other companies that tried the YC model, and failed. It isn’t “just” good founders and 10k.


What is the return like for Ycombinator?


They currently take 7% of the company for $125k per https://www.ycombinator.com/deal/

I know in the past though that, at a minimum, the amount of money was different. I'd say it's still safe to assume they own 7% though - so more than a billion USD on paper, not bad.




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