

Ask PG: Does YC have any plans to invest in YC companies future rounds? - nodesocket

Seems like the YC 7% ownership after a series A/B/C would get diluted heavily. Often times, Angel investors do the Angel round, just for the option/opportunity to invest larger amounts in future rounds. Would have been awesome for you guys, if you put in larger amounts in Heroku, AirBnB, and Dropbox future rounds.<p>Do you ever think YC will invest in companies later rounds after the initial 40K and 7%? Though, I can see this being problematic, as you would be 'picking' favorites.
======
pg
No, we don't invest in later rounds. Partly because you can't do that without
harming the reputations of the companies you don't invest in, and partly
because we'd rather fund a new startup than put more into an existing one.
I.e. we'd rather expand breadthwise than depthwise.

~~~
nodesocket
Makes sense, do you have an average figure of the companies that have exited,
what the YC percentage ownership is when the exit event occurs?

~~~
pg
We assume that in the biggest exits (which dominate the returns) we'll be
about 3x diluted.

