[kjksf]

Actually, it's rather clear that Y Combinator has no plans for an exit event.

To quote Paul Graham himself (https://news.ycombinator.com/item?id=13784):

"Ordinarily a startup should be a C corp. It's cheaper to be an LLC, but if you plan to succeed, you may as well do things right from the start.

With an LLC profits don't get taxed twice like in a regular corporation. So it makes sense to be an LLC if you expect to have substantial profits, but don't expect to grant options, sell shares, or get bought. Consulting firms and law partnerships are often LLCs. YC is an LLC."

So the shares in YC are worth $0.

[jacquesm]

The idea that shares are worth $0 because there are no plans for an exit is ridiculous.

[koolba]

If there's no dividends or liquidation ability then why would they be valued anything but zero?

[jacquesm]

The valuation of a company is a reflection of the value of the underlying assets. In the case of YC that is the sum of the value of all the companies YC holds stock in plus intangibles such as the value of the YC brand.

[tedmiston]

You could liquidate the shares by leaving the company.

[zodiac]

But shares in law partnerships aren't worthless. Presumably YC pays its profits (when its portfolio companies have exit events) out to shareholders, so its shares are worth the future value of those profits.

[Judgmentality]

Unless the YC shares are actually shares in all their companies, including DropBox and AirBnB which will inevitably IPO at some point.

[bobosha]

> Consulting firms and law partnerships are often LLCs

LLPs perhaps?