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Paul Graham

Responds to valuation critics

9 Oct, 2014

Graham responds to criticism that being a Y Combinator alum gains companies twice the valuation they would have had without participating. He tells Bloomberg Television’s Studio 1.0 with Emily Chang:

That means we can take people into YC, and even if we did nothing else, they would be able to get twice the valuation they would have otherwise. Either the company’s worth a lot or it’s not. If it’s worth a lot, then it was a bargain anyway, even if it was overpriced. And if the company ends up tanking, who cares how much you paid for this now worthless stock, right?