Re:Y Combinator: Disneyland for Investors?
by motti_s on Friday March 30, 2012 @04:35PM
(#3777986)
"...I just get the gut feeling that the value has disappeared for investors.."
One important factor when valuating a company is the perceived risk. YC employs strenuous filtering (it has to reject 97% of the applicants), mentors and connects the founders, and already has a track record of success. This means lower risk which merits higher valuations. It has nothing to do with hype. It's the new way of creating startups combined with the old way of valuating them.
One important factor when valuating a company is the perceived risk. YC employs strenuous filtering (it has to reject 97% of the applicants), mentors and connects the founders, and already has a track record of success. This means lower risk which merits higher valuations. It has nothing to do with hype. It's the new way of creating startups combined with the old way of valuating them.