4 ms·

Hmm don't know. With all due respect to PG and crew, VCs and angels seem to do their homework as well. Actually their initial filters are probably much more res

Hmm don't know. With all due respect to PG and crew, VCs and angels seem to do their homework as well. Actually their initial filters are probably much more restrictive so I guess it would depend on how you calculate the batting avgs.

Harj 17y ago
VCs do months of due diligence before they'll write you a check. We review an application from and write a check after speaking with you for 10 minutes.
- jacquesm 17y ago
  > VCs do months of due diligence before they'll write you a check. That just simply isn't true. Early stage is much quicker. The only time a VC needs 'months' to do dd is when there is a substantial company already, so when you're doing a late-stage investment, usually in the millions.
- freshfunk 17y ago
  Exactly. I think YC's process works for YC. But I wanted to make that counterpoint about VCs/angels and batting avgs in the context of this thread so that people don't infer that because they didn't get YC they will likely not get angel or VC money.
andyjdavis 17y ago
It depends whether you are more concerned with how often they pass on someone who then goes on to be successful or how often they pick someone who then fails. I suspect for most investors passing on someone who goes on to be wildly successful hurts a lot more than investing in multiple failed ventures. Given that, having a longer more thorough process may not be beneficial. At best a long process can reduce the number of failures by refusing to invest in them but it will never increase the number of successes which is limited by the number of people who ask you funding. I'm kind of surprised that no well funded VC funds have come up with the idea of just handing out 5-10k to every single not obviously doomed startup they come across in exchange for a few percent of each company. They could call it shotgun investing.

Harj 17y ago

VCs do months of due diligence before they'll write you a check. We review an application from and write a check after speaking with you for 10 minutes.

jacquesm 17y ago
> VCs do months of due diligence before they'll write you a check. That just simply isn't true. Early stage is much quicker. The only time a VC needs 'months' to do dd is when there is a substantial company already, so when you're doing a late-stage investment, usually in the millions.
freshfunk 17y ago
Exactly. I think YC's process works for YC. But I wanted to make that counterpoint about VCs/angels and batting avgs in the context of this thread so that people don't infer that because they didn't get YC they will likely not get angel or VC money.

andyjdavis 17y ago

It depends whether you are more concerned with how often they pass on someone who then goes on to be successful or how often they pick someone who then fails. I suspect for most investors passing on someone who goes on to be wildly successful hurts a lot more than investing in multiple failed ventures. Given that, having a longer more thorough process may not be beneficial. At best a long process can reduce the number of failures by refusing to invest in them but it will never increase the number of successes which is limited by the number of people who ask you funding. I'm kind of surprised that no well funded VC funds have come up with the idea of just handing out 5-10k to every single not obviously doomed startup they come across in exchange for a few percent of each company. They could call it shotgun investing.