8 ms·

You know what would be really awesome / disruptive / game-changing? If YC funded the program via crowdfunding (eg. JOBS Act) monies so that normal peons (sorry,

by beambot 11y ago

You know what would be really awesome / disruptive / game-changing? If YC funded the program via crowdfunding (eg. JOBS Act) monies so that normal peons (sorry, "non accredited investors") could realize gains from a fund of early startups while effectively locking out all these institutional investors. This would be a real coup for people who believe in Basic or Guaranteed Minimum Income [1], like Sama. [1] http://blog.samaltman.com/technology-and-wealth-inequality http://blog.samaltman.com/technology-and-wealth-inequality

sama 11y ago
We would someday like to allow access for individual investors. We actually looked into it this time around; it's still extremely difficult. But hopefully the laws keep evolving and someday soon we can make you lots of money :)
- beambot 11y ago
  Glad to hear it! In the meantime, I'm really excited for things like YC Research. Happy to contribute if I can (see profile). :)
- planfaster 11y ago
  I can't help but think how ironic it is that most Americans would say what we have is capitalism, but at the same time there are laws in place prohibiting people from freely sending capital to each other.
  - brainflake 11y ago
    It's regulated capitalism... You may not agree with the laws governing investments for private companies, but surely you can understand the motivation for protecting investors?
    - tvanantwerp 11y ago
      Protecting investors? By making it illegal for most people to actually become investors?
iheartmemcache 11y ago
Eh, it might be a good idea for the small population of tech savvy investors in Silicon Valley who make 6 figures and work within the industry so they can make informed decisions. But the whole SEC regulatory dictum that allows only accredited investors (accreditation based on annual income and net worth, not passing a Series 7 test or what not) can invest in certain forms of securities is a good thing. Imagine if Joe Schmo reads an article on the home page of the tech section of "his Yahoo" about this new investment vehicle, decided to put all of his 401k money that as safely placed in low-load index funds into a YC fund that didn't particularly do so well when the fund finally matured and he cashed out. I've seen people pissed off at losing 10 bucks on Kickstarter prototypes-- imagine how pissed off Joe would be that he lost 200k because he wanted to "get in on this Web 3.0 stuff". Those accredited investors regulations do more good than harm mostly because people in aggregate are greedy and don't read prospectus' in their entirety. Most people didn't even read their mortgages in 2007 (or now for that matter, even after the systemic ..situation of 2008), look what happened there. If you're living in SF and married to someone in tech, odds are you make enough to qualify as an accredited investor anyways-- the per annum barrier is pretty low.
- rtpg 11y ago
  See Mt Gox for a good example of what happens.
- tvanantwerp 11y ago
  > If you're living in SF and married to someone in tech, odds are you make enough to qualify as an accredited investor anyways-- the per annum barrier is pretty low. I'm not, and I'm not. I recognize that not everyone is sophisticated enough to do well at startup investing, but it's no one's place to tell me that I should be legally forbidden from making my own financial decisions. And I deeply resent the patronizing attitude of anyone who supports that prohibition.
- champillini 11y ago
  Essentially how the first tech stock bubble played out
- skellington 11y ago

by beambot 11y ago

sama 11y ago

We would someday like to allow access for individual investors. We actually looked into it this time around; it's still extremely difficult. But hopefully the laws keep evolving and someday soon we can make you lots of money :)

beambot 11y ago
Glad to hear it! In the meantime, I'm really excited for things like YC Research. Happy to contribute if I can (see profile). :)
planfaster 11y ago
I can't help but think how ironic it is that most Americans would say what we have is capitalism, but at the same time there are laws in place prohibiting people from freely sending capital to each other.
- brainflake 11y ago
  It's regulated capitalism... You may not agree with the laws governing investments for private companies, but surely you can understand the motivation for protecting investors?
  - tvanantwerp 11y ago
    Protecting investors? By making it illegal for most people to actually become investors?

iheartmemcache 11y ago

Eh, it might be a good idea for the small population of tech savvy investors in Silicon Valley who make 6 figures and work within the industry so they can make informed decisions. But the whole SEC regulatory dictum that allows only accredited investors (accreditation based on annual income and net worth, not passing a Series 7 test or what not) can invest in certain forms of securities is a good thing. Imagine if Joe Schmo reads an article on the home page of the tech section of "his Yahoo" about this new investment vehicle, decided to put all of his 401k money that as safely placed in low-load index funds into a YC fund that didn't particularly do so well when the fund finally matured and he cashed out. I've seen people pissed off at losing 10 bucks on Kickstarter prototypes-- imagine how pissed off Joe would be that he lost 200k because he wanted to "get in on this Web 3.0 stuff". Those accredited investors regulations do more good than harm mostly because people in aggregate are greedy and don't read prospectus' in their entirety. Most people didn't even read their mortgages in 2007 (or now for that matter, even after the systemic ..situation of 2008), look what happened there. If you're living in SF and married to someone in tech, odds are you make enough to qualify as an accredited investor anyways-- the per annum barrier is pretty low.

rtpg 11y ago
See Mt Gox for a good example of what happens.
tvanantwerp 11y ago
> If you're living in SF and married to someone in tech, odds are you make enough to qualify as an accredited investor anyways-- the per annum barrier is pretty low. I'm not, and I'm not. I recognize that not everyone is sophisticated enough to do well at startup investing, but it's no one's place to tell me that I should be legally forbidden from making my own financial decisions. And I deeply resent the patronizing attitude of anyone who supports that prohibition.
champillini 11y ago
Essentially how the first tech stock bubble played out
skellington 11y ago