Comment by moralestapia
15 hours ago
Seems that the "it's a numbers game" thesis delivered.
(I know the previous deal was different but just to get an estimate ...)
500k to each of 5,000+ startups = 2.5 billion
in exchange of
7% of 1.3 trillion = 91 billion
~36x return.
It's even better than that as they invest, on average, less than 500k and get, on average, more than 7% equity. (But they also get diluted, so, who knows).
Of note, that 1.3 trillion follows a comically long tailed distribution.
OpenAI is 500B.
Stripe+Doordash+Airbnb+Coinbase+Reddit+Scale is 400B.
The remainder is 5,000+ companies.
You dont get 7% of a company, you get 7% of outstanding sharez. So its shares held * stock price. Usually there are less stocks issued at the initial stages with more coming in later as more investors are added. I dont think YC maintains 7% across all their investments.
>(But they also get diluted, so, who knows)