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There is no conflict of interest in you applying to YC IMO. The YC company is likely being self serving here and your job is to look out for your own interests
by davismwfl 11y ago
There is no conflict of interest in you applying to YC IMO. The YC company is likely being self serving here and your job is to look out for your own interests.
That said, there is another option that people aren't mentioning, and that is that their self serving interests may actually be somewhat aligned with your own. Having been through YC they understand the time commitment and the level of effort needed to go through it, the good and bad. They may be concerned about your ability to keep servicing them as they need and growing with them quick enough. So while self serving, it might not be because they want to hold you down, but are worried you won't be able to live up to your commitments with them. If you can grow organically, and not take (or delay) outside investment because you have paying clients you are better off too.
In the end, regardless of their reasoning you have to do what you feel is best for your team. If that means applying to YC do it. But I wouldn't do it without being up front and having a talk with the YC company. Ask them to give you their reasoning why you shouldn't apply, get their side. Maybe they are willing to fund you, beyond just paying for product/services. Help them see that your team being stronger is not bad for them, but a benefit. Even if their eye is on acquisition, they may be willing to fund you to keep your focus, after all they'd be basically paying themselves in the end. Outside of SV a lot of companies work this way, you have a strong partnership with a larger firm but you are small, so many times the larger firm will help keep you afloat in various ways to make sure they are taken care of. Yes you have to manage expectations properly, but it is quite successful a lot of times (like anything though, it can be tragically unsuccessful too).
Even if your goal is to pursue Angle/VC funding, you need to realize it becomes almost a full time job for 1 person (and both partners should be pitching), and might take you the better part of 6-12 months to make the necessary contacts, work them and get in front of enough people to get funded. So again, their concern might be you team being so small and not having the resources to keep them moving and get funding. If you have the contacts already then you are still looking at 3-6 months at minimum, assuming you have traction -- IMO.
No matter what, good luck and congrats on your growth!