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My cousin Yusuf

Stay foolish. Stay hungry. -Steve Jobs

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What if Obama gave Y-Combinator 40 Billion Dollars

I just came across this headline: Government to swap $40B for GM stock

This got me thinking about a super hypothetical: what if Y-Combinator got 40B?

First a few assumptions...

  • First off, let's take out 25% for running Y-Combinator. This leaves $30B of cash to dole out.
  • Let's say the average invested per startup is $25,000. Let's add another $25,000 for paperwork. So per startup, $50,000 will be spent
  • YC has funded 118 startups in total. They employ 198 people not counting the founders. Per invested startup, 1.7 new job is created. (198/118)

Now for some numbers...

  • 600,000 new startups
    the number of startups that can be funded.
    (total money - admin cost) / cost per startup = ($40B - $10B) / $50,000
  • 1,020,000 people
    employed by the startups.
    avg. # of employees x total startups = 1.7 x 600,000
  • 125,000 people
     
    # of people employed by GM.

This is all hypothetical.
Nevertheless, this should help show the ridiculous nature of pumping in 40B in a failed corporation to bail out a few hundred thousand employees  temporarily. There ought to be a better way to bring food to the tables of GM factory workers than delaying the death of their jobs.

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Radical Honesty, one awesome read

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Me with Tyler Handborough

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Watching Tyler debate

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Playing cricket with Hamid Cha

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Tyler Hansborough is Tallllllllllllllllll

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Stay foolish. Stay hungry. -Steve Jobs

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Caroooolina

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Tar Heeeeels Winnnnn.

At Carolina student union

Stay foolish. Stay hungry. -Steve Jobs

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