Re:Is There a Y Combinator Valuation Bubble or Not?
by paul on Monday April 16, 2012 @07:59PM
(#3850158)
That's part of the "odds that it will be dropbox" calculation. It's also why we invest primarily in founders and not ideas.
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Re:Is There a Y Combinator Valuation Bubble or Not?
by eldavido on Monday April 16, 2012 @08:10PM
(#3850198)
Interesting point. I view YC's strategy as playing the central limit theorem -- taking a high-volatility random variable (startup returns) and increasing the sample size until the sample mean tends arbitrarily close to the population mean.
Smart, guys.