I thought it was a reference to domestic violence, but I suppose it could be a reference to religiously "justified" domestic violence.

> This likely means YC gets about $3-5million out of the deal, funding even more startups in the future. :)

I'm fairly sure that YC doesn't recycle the money off from wins, but instead returns it to their investors. YC is a for-profit fund that uses other people's money to give about $20k cash and $20k of training in exchange for 6% of their company.

When I wrote that I didn't mean it in a strict accounting sense, but in a holistic sense. ie, I don't see PG and Jessica buying a yacht with their YC earnings, but I can see them plowing the earnings back into the program. :)

do you have evidence? traditional vc funds don't recycle their money, but yc is not a traditional vc fund

YC raised an $8.25m fund in 2010, and the investors care about IRR and liquidity.

OMGpop (known as I'm In Like With You at the time) was a pre-fund investment.

Also, I expect that the limited partners of YC have given them unusually flexible and favorable terms.