> Combinator has funded over 460 startups, the vast majority are unheard of and presumably not breakthrough successes like Airbnb or Dropbox (yet?). This number alone was one of the more interesting data points of the day. Will Dropbox and Airbnb pay for it all 10x over?
I'm no accountant, but say they give every startup $18k * 460 = $8,280,000. AirnBnB gets valued at 1.3 Billion * .07 = $91,000,000.
There are generalizations aplenty in my reasoning, but I'm sure that ycombinator being profitable isn't an issue.
I don't know the details of YC's investments, but usually investors get diluted on each successive round, which means that YC probably doesn't own 7% of AirBnB, but much less than that.
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> Combinator has funded over 460 startups, the vast majority are unheard of and presumably not breakthrough successes like Airbnb or Dropbox (yet?). This number alone was one of the more interesting data points of the day. Will Dropbox and Airbnb pay for it all 10x over?
I'm no accountant, but say they give every startup $18k * 460 = $8,280,000. AirnBnB gets valued at 1.3 Billion * .07 = $91,000,000.
There are generalizations aplenty in my reasoning, but I'm sure that ycombinator being profitable isn't an issue.
I don't know the details of YC's investments, but usually investors get diluted on each successive round, which means that YC probably doesn't own 7% of AirBnB, but much less than that.
They could own 1/10th of that and still be profitable based on a single company, and it's extremely unusual to see 90% dilution.
So while you're technically correct that they don't own 7%, it's unlikely to matter in this example.