A part of any investing activity requires risk taking (truer now than ever as sovereign debts are defaulting or on verge of that), the other part is making profit based on risk. In case of startup seed funding the risk are much higher but profits are high too (like 1000x). Now an investor can make profit by selling their share to other (future) investors. The point to note here is: the first investor sells thinking that the venture’s value has reached a reasonable price which was expected or it’s now overpriced.The point is, profit has to be booked to be realized.My question to PG is how does YC decide when to sell?
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