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really fascinating , what about rest ?

Have you ever think why that happens?

according to this, they don't seem to contribute a $300 Billion of YC stake as valuation.

I have observed the YC effect. Yes, they have some massive hits, but their real impact is standardizing the startup building process. Before YC, there was no clear playbook for building a startup. Now? Everyone knows the metrics, the pitches, the growth tactics. That standardization has made it easier for everyone to build companies, YC or not. Also, notice when these mega-hits were founded? Airbnb (2008), Stripe (2010), Coinbase (2012), DoorDash (2013). All perfect timing for their respective markets. YC's biggest skill isn't picking winners, it's having enough shots on goal to catch major market shifts. The real question is whether they can still do it or not, and if yes, then for how long.

This post demonstrates survivorship bias perfectly. Cool, AirBnB and Stripe are worth billions. But what about the thousands of YC founders who burned years of their lives chasing the same dream? I went through YC in 2018, raised $2M, worked 80-hour weeks for three years, and ended up with nothing. The program's great at teaching you how to raise money, not how to build sustainable businesses

This concentration is actually normal in venture portfolios, but people misinterpret what it means. The 'power law' distribution isn't a bug, it's a feature. What's interesting isn't that 4 companies make up half the value - it's that YC managed to get into ALL of them. Look at other accelerators from the same era: TechStars, 500 Startups, etc. None of them hit the same rate of mega-outcomes.

These numbers actually underscore a dirty secret in venture capital that nobody talks about: most 'successful' accelerators are really just lottery tickets looking for one massive hit. YC's real genius isn't their training program - it's their ability to invest in enough companies that they mathematically can't miss the next Stripe.

Now this is how you justify taking calculated risks in venture capital

It’s crazy how just 4 companies hold half of the total valuation but then again, 20% will give 80% of the returns is something I have heard a lot of VCs talking about

Power law