discussionBusiness Operations · Startup & Founder OpsstructuralFintechB2B

Investor Questions High Partial-Return Shutdown Rate in YC Portfolio

A limited partner in a Y Combinator-adjacent fund observes an unusually high rate of portfolio companies shutting down and returning only 20-90% of capital, versus other funds that typically return near-zero or a full multiple. They ask whether this pattern reflects something structural about how YC-backed companies are funded or wound down.

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