Ask HN: What's the ROI of Y Combinator investments? - longtermd
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westurner
To calculate the ROI of YC investments, we could find the terms of the YC
investments (x for y%, preference) and find the exit rate (what % of companies
exit).

We could search for 'ROI of ycombinator investments' and find valuation
numbers from a number of years ago.

From the first page of search results, we'd then learn about "return on
capital" and how the standard YC seed terms have changed over the years.

Return on capital:
[https://en.wikipedia.org/wiki/Return_on_capital](https://en.wikipedia.org/wiki/Return_on_capital)

From the See also section of this Wikipedia page, we might discover "Cash flow
return on investment" and "Rate of return on a portfolio"

From the "rate of return" Wikipedia page, we might learn that _" The return on
investment (ROI) is return per dollar invested. It is a measure of investment
performance, as opposed to size (c.f. return on equity, return on assets,
return on capital employed)."_ and that _" The annualized return of an
investment depends on whether or not the return, including interest and
dividends, from one period is reinvested in the next period. "_
[https://en.wikipedia.org/wiki/Rate_of_return](https://en.wikipedia.org/wiki/Rate_of_return)

From the YCombinator Wikipedia page, we might read that _" The combined
valuation of the top YC companies was over $155 billion as of October, 2019.
[4]"_ and that _" As of late 2019, Y Combinator had invested in >2,000
companies [37], most of which are for-profit. Non-profit organizations can
also participate in the main YC program. [38]"_ and then read about "seed
accelerators" and then "business incubators" in search of appropriate metrics
for comparing VC performance.
[https://en.wikipedia.org/wiki/Y_Combinator](https://en.wikipedia.org/wiki/Y_Combinator)

ROI is such a frou frou statistic anyway. What does that even mean, ROI? In
any case, YC itself is not a public company, per se, AFAICT, so, it's not so
easy as going to [https://YCharts.com](https://YCharts.com), entering the
_equity symbol_ , clicking on "Key Stats", and scrolling down to
"Profitability" to review [Gross | EBITDA | Operating] [Profit] Margin.

The LTSE (Long-Term Stock Exchange) is where people who are in this for real
are really doing it now.

