[chadash]

> They can also literally kill your company. VCs have a very specific strategy: they give some money to 1000 companies knowing that 990 of them will return 0% in the hopes that of the remaining ten, 9 of them return %X000 and one returns %X0000.

+1 to this.

There are definitely different models for VCs, but in general, the big "brand name" VCs are in the unicorn business. This tweet [1] does a succinct job of explaining why.

The result of this is that as a founder, if you own 49% of your company and big-VC investors own 51% of your company and someone comes along offering to buy your company for $100m, your investors are likely to turn it down. For you, that would likely be a life-changing amount of money. For a big-name VC, it doesn't move the needle. In most cases, they'd rather roll the dice and end up with $0 then get their share of a $100m exit.

[1] https://twitter.com/jasonlk/status/1670021902612549632?ref_s...

[user_7832]

> There are definitely different models for VCs, but in general, the big "brand name" VCs are in the unicorn business.

Slightly naive question, but does this include YC? The wording on their page makes it sound like joining YC would help most startups but is that just for show? Or does this apply much more when the VC owns >50% of the company?

[chadash]

Take a look at the second chat at https://jaredheyman.medium.com/on-the-176-annual-return-of-a.... The vast majority of returns for YC are for the companies at the tippy top of that chart (Airbnb, Stripe, Dropbox and a few others).

YC certainly provides a nice package to founders. But they are definitely in the unicorn business.