Out of a group of 10 companies, the average YC company has a top valuation of about 220 million. Paul does not give the distribution other than 'a power law' distribution.
>> If 5 companies have valuations of $5, $10, $15, 20, $1000
A more likely range of valuations out of 10 companies is:
$0, $0, $0, $0, $0, $0, $3M, $11M, $55M, $220M
The YC average is quite decent. The median result is likely to be $0.
If this probability distribution scares you, it is time to rethink startup companies.
The YC average is quite decent. The median result is likely to be $0.
If this probability distribution scares you, it is time to rethink startup companies.