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>and we don’t shy away from expensive hardware--we’ve funded companies building things like nuclear reactors and rockets, which will require hundreds of millions of dollars in funding to succeed

How does this make sense for YC to do?

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I'd guess that it's part of a diversified approach. Yes, they are capital intensive, but YC isn't the one who will be investing the hundreds of millions, and if one of these is successful, then I'd say it's likely to be hugely successful and a worthwhile return for YC.

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