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A comment on Looks Like Zynga Just Bought OMGPOP For $200 Million. Parent comment

Re:Looks Like Zynga Just Bought OMGPOP For $200 Million by pinkton on Wednesday March 21, 2012 @03:31PM (#3736143)
> This likely means YC gets about $3-5million out of the deal, funding even more startups in the future. :)

I'm fairly sure that YC doesn't recycle the money off from wins, but instead returns it to their investors. YC is a for-profit fund that uses other people's money to give about $20k cash and $20k of training in exchange for 6% of their company.

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Re:Looks Like Zynga Just Bought OMGPOP For $200 Million by jedc on Wednesday March 21, 2012 @08:36PM (#3737672)
When I wrote that I didn't mean it in a strict accounting sense, but in a holistic sense. ie, I don't see PG and Jessica buying a yacht with their YC earnings, but I can see them plowing the earnings back into the program. :)
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Re:Looks Like Zynga Just Bought OMGPOP For $200 Million by YuriNiyazov on Wednesday March 21, 2012 @03:46PM (#3736237)
do you have evidence? traditional vc funds don't recycle their money, but yc is not a traditional vc fund
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Re:Looks Like Zynga Just Bought OMGPOP For $200 Million by pinkton on Wednesday March 21, 2012 @04:08PM (#3736332)
YC raised an $8.25m fund in 2010, and the investors care about IRR and liquidity.
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Re:Looks Like Zynga Just Bought OMGPOP For $200 Million by rms on Wednesday March 21, 2012 @06:29PM (#3737110)
OMGpop (known as I'm In Like With You at the time) was a pre-fund investment.

Also, I expect that the limited partners of YC have given them unusually flexible and favorable terms.

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