[OC] Of the 17 Y Combinator companies that went public, 14 have lost money for investors.
July 27, 2024
[OC] Of the 17 Y Combinator companies that went public, 14 have lost money for investors.
Posted by nobjos
8 comments
Data Source: Y Combinator (List of Public YC Companies), Stock Market data from EODHD, Visualization using Figma.
The stark contrast between Y Combinator’s private market triumphs and the public market struggles reveals an interesting paradox in the modern tech ecosystem. Private markets can sustain higher valuations based on just potential alone — Investors are willing to bet on visionary ideas and projected growth. But unless you are Tesla, public markets eventually demand tangible results, often leading to painful drawdowns.
Losing 99% in 3 years is an impressive achievement. You’d get better returns in a crypto shitcoin
It is crazy that close to 5000 companies have gone through YC, and only 17 has gone public
This appears to be current stock price compared to IPO stock price. Y Combinator, and the investors who fund Y Combinator, still made massive returns on these companies.
IPO’s are sketchy, because the major shareholders and big investors in most cases buy their shares for a lower price through exclusive deals, then inflate the hype and expectations of the company, raising it’s IPO costs for common people and small time investors when the stock is later made public. Meaning that even if a stock has had a negative price development since it’s introduction – the price is probably still higher than before the IPO, meaning major shareholders still have made a profit.
My take away is that SP 500 is still the best bet.
Fascinating, but note that a stock going down (even 50% or more) certainly doesn’t mean it’s out of the game. Consider the case where a business does really well, investors over-value it (say by 5x) and then it IPO’s right around that time. Then when it returns to fair value it looks like it’s fallen 80%, when really the market became rational again. Over time, it might very well return to a fair value of 5x, and beyond.
Wow reddit has gone up 35% since IPO?
I recieved a message from the admins saying that I eligible to take part but didn’t since I’m not a US citizen and wasn’t really in the mood to do what it takes to buy stocks in foreign markets. Guess I should’ve put the effort in.
8 comments
Data Source: Y Combinator (List of Public YC Companies), Stock Market data from EODHD, Visualization using Figma.
The stark contrast between Y Combinator’s private market triumphs and the public market struggles reveals an interesting paradox in the modern tech ecosystem. Private markets can sustain higher valuations based on just potential alone — Investors are willing to bet on visionary ideas and projected growth. But unless you are Tesla, public markets eventually demand tangible results, often leading to painful drawdowns.
Losing 99% in 3 years is an impressive achievement. You’d get better returns in a crypto shitcoin
It is crazy that close to 5000 companies have gone through YC, and only 17 has gone public
This appears to be current stock price compared to IPO stock price. Y Combinator, and the investors who fund Y Combinator, still made massive returns on these companies.
IPO’s are sketchy, because the major shareholders and big investors in most cases buy their shares for a lower price through exclusive deals, then inflate the hype and expectations of the company, raising it’s IPO costs for common people and small time investors when the stock is later made public. Meaning that even if a stock has had a negative price development since it’s introduction – the price is probably still higher than before the IPO, meaning major shareholders still have made a profit.
My take away is that SP 500 is still the best bet.
Fascinating, but note that a stock going down (even 50% or more) certainly doesn’t mean it’s out of the game. Consider the case where a business does really well, investors over-value it (say by 5x) and then it IPO’s right around that time. Then when it returns to fair value it looks like it’s fallen 80%, when really the market became rational again. Over time, it might very well return to a fair value of 5x, and beyond.
Wow reddit has gone up 35% since IPO?
I recieved a message from the admins saying that I eligible to take part but didn’t since I’m not a US citizen and wasn’t really in the mood to do what it takes to buy stocks in foreign markets. Guess I should’ve put the effort in.