{"id":329,"date":"2011-02-03T13:18:29","date_gmt":"2011-02-03T17:18:29","guid":{"rendered":"http:\/\/blog.payne.org\/?p=329"},"modified":"2011-02-03T13:18:29","modified_gmt":"2011-02-03T17:18:29","slug":"meta-investing","status":"publish","type":"post","link":"https:\/\/payne.org\/blog\/meta-investing\/","title":{"rendered":"Meta-Investing"},"content":{"rendered":"<p>On Yuri Milner making a blanket investment (loan) offer to every Y Combinator startup: \u00a0very interesting and good headline fodder, but in many ways, not surprising.<\/p>\n<p>The return distributions for Internet-flavored technology startups have gotten very, very skewed. \u00a0For example, instead of a bunch of big exits ($500m or more) per year, we&#8217;re going to have <strong>one<\/strong> gigantic $50b Facebook exit. \u00a0The expected value for investors and entrepreneurs may not have changed much, but the chances of any single project generating a return is much lower. \u00a0It&#8217;s becoming more like a lottery.<\/p>\n<p>If you wanted to play in this market, what would you do? \u00a0Buying a little bit of a lot of lottery tickets is not a bad idea, especially if:<\/p>\n<ul>\n<li>You have a huge fund.<\/li>\n<li>You believe that Y Combinator is a reasonable filtering function for startup quality.<\/li>\n<li>You get visibility and an option (explicit or implicit) to invest more later in the winners.<\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"<p>On Yuri Milner making a blanket investment (loan) offer to every Y Combinator startup: \u00a0very interesting and good headline fodder, but in many ways, not surprising. The return distributions for Internet-flavored technology startups have gotten very, very skewed. \u00a0For example, &hellip; <a href=\"https:\/\/payne.org\/blog\/meta-investing\/\">Continue reading <span class=\"meta-nav\">&rarr;<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-329","post","type-post","status-publish","format-standard","hentry","category-uncategorized"],"_links":{"self":[{"href":"https:\/\/payne.org\/blog\/wp-json\/wp\/v2\/posts\/329","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/payne.org\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/payne.org\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/payne.org\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/payne.org\/blog\/wp-json\/wp\/v2\/comments?post=329"}],"version-history":[{"count":0,"href":"https:\/\/payne.org\/blog\/wp-json\/wp\/v2\/posts\/329\/revisions"}],"wp:attachment":[{"href":"https:\/\/payne.org\/blog\/wp-json\/wp\/v2\/media?parent=329"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/payne.org\/blog\/wp-json\/wp\/v2\/categories?post=329"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/payne.org\/blog\/wp-json\/wp\/v2\/tags?post=329"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}