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Unless I am mistaken, literally all YC companies raise money. They do it from YC itself. There are lots of ways you could spin it, but how can Sam justify such
by ukulele 9y ago
Unless I am mistaken, literally all YC companies raise money. They do it from YC itself.
There are lots of ways you could spin it, but how can Sam justify such a statement when they've invested in all of these companies too?
- benatkin 9y agoThe difference between the first round and future rounds can be significant. Sometimes there's no company, and since there's no company, a company isn't raising money. Often the prospective founders don't start working on their product until they raise, even making it contingent on raising money, which means up until Demo Day the founders haven't tried to build their product and raise money at the same time. Finally, most aren't raising based on market traction – at YC stage it's valid not to have any market traction (though having traction at that stage is also valid).
- ukulele 9y agoBy this logic, YC is investing even before the point that others shouldn't be investing, which would make even less sense.
- benatkin 9y agoHmm, I was going to say that at YC they're investing on the team more than the product, and they can afford to do that, but I think investing primarily based on the team is common after the seed round too. So I concede that it doesn't make logical sense that the YC startups are too early to invest, if you have the right investor, that is going to play a similar role to YC.
- tzar 9y agoHe almost certainly meant that not all startups should raise more money, or raise the kind of money that many startups raise post-Demo Day.