Re:Data on YC-funded startups and their founders
by tomhoward on Tuesday November 16, 2010 @06:32AM
(#1909779)
From YC's point-of-view, the ultimate aim is to be acquired or to IPO (which AFAIK has never happened and is unlikely to happen in more than a few exceptional cases). An exit the only way YC gets a return on their investment.
This aligns with tech startup culture generally, where the investors invest with the hope of someday making an exit, and only then does the founders' big payday arrive (the "liquidity event").
In this context, profitability is a secondary question to whether the company is still alive, growing, and on track to delivering the founders and investors a successful exit.
This aligns with tech startup culture generally, where the investors invest with the hope of someday making an exit, and only then does the founders' big payday arrive (the "liquidity event").
In this context, profitability is a secondary question to whether the company is still alive, growing, and on track to delivering the founders and investors a successful exit.