6 ms·

42 companies * $40M is $1.7B. Wow.

by dkl 13y ago

seiji 13y ago
Almost half of one snapchat (with only 20 employees).
idoh 13y ago
It's 40MM or more. There are some significant outliers, like Dropbox and AirBnB.
canistr 13y ago
42 * $40M * 6% (average stake YC gets in company) = $100M According to http://techcrunch.com/2013/10/25/y-combinator-13-7b-valuation/ http://techcrunch.com/2013/10/25/y-combinator-13-7b-valuatio...: - YC company valuations total $13.7 Billion - 511 companies total $11,000 + $3000 * # of founders = total investment in YC companies (let's just go with 17k for 2 founders on average) = $17K $17000 * 511 = $8.7M $100M - $8.7M = $91.3M Clearly a pretty good investment =P
- recuter 13y ago
  That's (very very roughly) 30% IRR which sounds kind of nuts to me.
- jayzalowitz 13y ago
  account /2 for average probable dilution.
- mattmanser 13y ago
  What about dilution?
  - epa 13y ago
    YC Equity stakes are likely unable to be diluted. Not all shares can just get 'diluted' aka expanded.
    - hglaser 13y ago
      Nope, YC's equity gets diluted like everyone else's. In fact, while many investors will buy more shares (at the new price) to keep their % ownership, YC does not, so their ownership % when the company exits is probably 3% or less, down from the original 6%.
    - pg 13y ago
      We get diluted. Every investor gets diluted. They may have the right to buy more stock in later rounds to maintain their percentage, but they do have to buy it, at the price of that round.
      - epa 13y ago
        Interesting
- nimble 13y ago
  I wonder whether stake is correlated (perhaps inversely) with valuation.
- tedsanders 13y ago
  Doesn't the 6% get diluted once additional money is invested?
  - coolswan 13y ago
    yes, YC doesn't do pro rata. so basically they're down to probably at least 2-3%, but probably more.
- nakkiel 13y ago
  Are you saying that YC only invests 11K per company plus 3K per founder?
  - patmcc 13y ago
    Currently it doesn't seem to be that low ( "we invest a small amount of money ($14-20k + an $80k note") from http://ycombinator.com/ http://ycombinator.com/ , but yeah, it's not a huge amount of cash. It is very early stage startups though, remember.
  - namenotrequired 13y ago
    That's what YC says: How much do you invest? Usually $11,000 + $3000 per founder. So $17,000 for two founders, $20,000 for three or more. We've also arranged for each startup to get $80k in convertible notes automatically. The goal is usually to give you enough money to build an impressive prototype or version 1, which you can then use to get further funding. http://ycombinator.com/faq.html http://ycombinator.com/faq.html
pg 13y ago
$40m is the threshold, but this is a domain with a pretty steep power law distribution, so their total value is a good deal more than that.
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42 companies * $40M is $1.7B. Wow.

by dkl 13y ago

42 companies * $40M is $1.7B. Wow.

seiji 13y ago

Almost half of one snapchat (with only 20 employees).

idoh 13y ago

It's 40MM or more. There are some significant outliers, like Dropbox and AirBnB.

canistr 13y ago

42 * $40M * 6% (average stake YC gets in company) = $100M According to http://techcrunch.com/2013/10/25/y-combinator-13-7b-valuation/ http://techcrunch.com/2013/10/25/y-combinator-13-7b-valuatio...: - YC company valuations total $13.7 Billion - 511 companies total $11,000 + $3000 * # of founders = total investment in YC companies (let's just go with 17k for 2 founders on average) = $17K $17000 * 511 = $8.7M $100M - $8.7M = $91.3M Clearly a pretty good investment =P

recuter 13y ago
That's (very very roughly) 30% IRR which sounds kind of nuts to me.
jayzalowitz 13y ago
account /2 for average probable dilution.
mattmanser 13y ago
What about dilution?
- epa 13y ago
  YC Equity stakes are likely unable to be diluted. Not all shares can just get 'diluted' aka expanded.
  - hglaser 13y ago
    Nope, YC's equity gets diluted like everyone else's. In fact, while many investors will buy more shares (at the new price) to keep their % ownership, YC does not, so their ownership % when the company exits is probably 3% or less, down from the original 6%.
  - pg 13y ago
    We get diluted. Every investor gets diluted. They may have the right to buy more stock in later rounds to maintain their percentage, but they do have to buy it, at the price of that round.
    - epa 13y ago
      Interesting
nimble 13y ago
I wonder whether stake is correlated (perhaps inversely) with valuation.
tedsanders 13y ago
Doesn't the 6% get diluted once additional money is invested?
- coolswan 13y ago
  yes, YC doesn't do pro rata. so basically they're down to probably at least 2-3%, but probably more.
nakkiel 13y ago
Are you saying that YC only invests 11K per company plus 3K per founder?
- patmcc 13y ago
  Currently it doesn't seem to be that low ( "we invest a small amount of money ($14-20k + an $80k note") from http://ycombinator.com/ http://ycombinator.com/ , but yeah, it's not a huge amount of cash. It is very early stage startups though, remember.
- namenotrequired 13y ago
  That's what YC says: How much do you invest? Usually $11,000 + $3000 per founder. So $17,000 for two founders, $20,000 for three or more. We've also arranged for each startup to get $80k in convertible notes automatically. The goal is usually to give you enough money to build an impressive prototype or version 1, which you can then use to get further funding. http://ycombinator.com/faq.html http://ycombinator.com/faq.html

pg 13y ago

$40m is the threshold, but this is a domain with a pretty steep power law distribution, so their total value is a good deal more than that.

deleted 13y ago

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