First Look at TechStars Historical Results Data

http://www.readwriteweb.com/start/2010/03/techstars-historical-results-data.php

by dannyr • 16 years ago

15 12 16 years ago

pg4• 16 years ago

According to our data, 98/145 or 67.6% of companies we funded in s2009 or before are funded and/or profitable and/or acquired.

We don't focus on that number, though (I had to write code to calculate it) because the big returns in startup investing often come from outliers that look very risky at first. For example, Drew Houston of Dropbox, who was a single founder when we funded the company, or Sam Altman of Loopt, who was only 19. If we focused on the ratio of successes to failures, instead of the absolute number of big wins, it would make us conservative, and only pick companies we knew would be safe bets to get follow-on funding.

netcan3• 16 years ago

What do you use for feedback then.

pg4• 16 years ago

The number we care most about is the number that become really big. It takes years to know that of course, but the number that raise series A rounds from tier 1 VC funds is a reasonable proxy (since they won't invest in a startup unless they think it will become really big).

necrecious• 16 years ago

I think the ratio of alive vs deadpooled companies is something that may attract applicants.

For example, if 144 companies died and success was Google, it might have been a great return for YC, but I am not sure if applicants would see it in the same way.

Every founder believes his starup will make it big if it stays alive. So he will project his vision of success in the alive column and not care how big of a return outliers get.

jacquesm• 16 years ago

Do you count tipjoy as 'acquired' ?

pg4• 16 years ago

No, that acquisition famously fell through.

webwright• 16 years ago

That blog post that this one links to about YC is miles off (at least for W08). 6 of the companies listed as "active" actually have received funding (7 if you include SnapTalent). I think TechStars deserves a big congrats, but this is pretty shoddy reporting.

First Look at TechStars Historical Results Data

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