Y Combinator has invested in over 5000 startups with a total valuation of $600 billion.
Out of these, just 4 companiesโStripe, Airbnb, Coinbase, and DoorDash accounts for ~$300 billion of the valuation.
Fascinating, isnโt it?
Ever wondered why investors fight on valuation of a company? Lets look at the formula below:
% given to investor = (Total amount you want to raise/Total valudation of the company) *100
So lower the valuation, higher % you have to give to the invest