[briholt]

Looks like there's a useful built-in selection bias. YC commits itself to investing in future rounds, but only good companies will be able to raise future rounds, so they probably won't get stuck doubling down on too many failing companies.

[_delirium]

> only good companies will be able to raise future rounds

Given the rather poor returns of the VC sector overall, I'm not sure you can make this assumption without more qualification.

[briholt]

Fair enough:

* ...only not-completely-screwed-up-trainwrecks will raise future rounds...

[namenotrequired]

Maybe the inverted statement is more appropriate?

... companies that aren't able to raise further rounds will fail...