The Big Winner from Y Combinator’s Success? Sequoia Capital: ".... when Sequoia finds a winner, they try to own as much of the company as possible through follow-on investments (they famously provided all of the institutional capital to WhatsApp, a company that was bought by Facebook for $19BN). Sequoia is the biggest winner from the founding of Y Combinator. But why? Sequoia can double down on the fastest-growing companies and YC can’t. The way YC is currently structured doesn’t allow them to make follow-on investments to get larger stakes in the runaway winners like Airbnb and Dropbox (though some of the YC partners do make personal follow-on investments)...."
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