I think it is about the cashout event, if a YC company went to IPO, we could talk about what kind of value YC/ others cashed out at. The company paying to hire talent is also cashing YC/ others out. It doesn't matter how badly they over/ undervalue it they have paid that amount.
My disagreement came from how to think about valuations and investing:
I know for me, and a lot of people, the concrete value that was determined because someone actually paid it holds a higher weight than the valuations speculative investors have given the lastest hot startups.
When an early stage professional investor, invests in a startup at a particular valuation, they are just as qualified as someone in a later round. Yes, for the entrepreneur they do not have an "exit", but you do not know the other terms of the deal. In many cases entrepreneurs cash out at many rounds so a big valuation in an early round can in fact make them wealthy.
The line of thinking that professional investors at early stages are "speculative" is true, but not as much once you consider they are making more than 1 investment.
-I work at a post IPO investment fund, but I respect those that make tough decisions earlier in the lifecycle of a business and respect entrepreneurs that get that far.
