4 ms·
YC owns 6% of the company when they go through their program. This stake is diluted further in future rounds of financing. This is not enough stake in the pref
by hkmurakami 10y ago
YC owns 6% of the company when they go through their program. This stake is diluted further in future rounds of financing.
This is not enough stake in the preferred shares to dictate anything.
- jsprogrammer 10y agoSam's New Deal is for 7%, but I believe YC has re-up'd on some companies in the past.
- hkmurakami 10y agoYC following on is a very recent policy. Before, their stated policy was never to follow on, in order to prevent signaling risk.
- jsprogrammer 10y agoHas signalling risk gone away, or has YC expanded its appetite?
- tyre 10y agoYC Continuity now participates in every following round, up to something like a $350m valuation. So they follow on for everyone, to eliminate signaling.