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Wouldn't the investments then also spread thinner?
by mjomaa 2y ago
Wouldn't the investments then also spread thinner?
- toomuchtodo 2y agoYC has substantial capital to deploy, including capital from interested alumni. https://www.axios.com/2024/04/06/ycombinator-funds-alumi-investing https://www.axios.com/2024/04/06/ycombinator-funds-alumi-inv...
- muzani 2y agoThey invest relatively little compared to the successes, to the point that they're even using SAFEs to double down. The thing is YC can't invest more; too much money is bad too for early stage. So it makes sense to invest into company with lower odds. They've also said that some of their best outcomes were just slightly above the bar, so there's probably a lot of potential unicorns slightly below the bar as well.
- toomuchtodo 2y agoAgreed, the TLDR is they want as many cheap dice rolls as possible, and can afford it.