Comment by hobofan

> but eventually VCs will realize that they're getting bad returns from their investments

I'm not saying that they are necessarily bad returns. It's just that for many reasons there is a strong opportunity for a disconnect between viable business models and seed-investments. E.g. exit event horizons are currently so long[0] that it becomes hard to correlate exit success to seed-funding (for better or worse).

> If you think that's the path to good long-term ROI, I have a startup to sell you.

Oh, I don't disagree with you. But from the actions of YCombinator it seem like either:

- They don't see this as a risk to their long-term ROI (due to some factors we are not seeing here)

- They don't have proper means of self-assessing their selection quality and think they are scaling well while they don't

- The situation is not as bad as the article and some of the comments here make it look like, and everything is fine with YC

[0]: https://www.ycombinator.com/topcompanies/ <- There are many 10+ year old companies on that list without an exit and YCombinator isn't even 20 years old yet