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2 is not a conflict of interest because increased capital supply means better terms for their companies. YC's interests lie first and foremost with its own fund
by hkmurakami 9y ago
2 is not a conflict of interest because increased capital supply means better terms for their companies. YC's interests lie first and foremost with its own funds (its LPs) and its batch companies. Increasing the competition for dealflow amongst angels does not conflict with _their_ interests.
It will however likely suppress returns of existing angel/seed investors, as deal values are inflated.
Fwiw the timing of this makes sense. We are seeing reports of the angel/seed market drying up as the wave of post 2010 first time angels have lost their enthusiasm (or capital), and seed fundraising in 2018 is much much harder than in 2015.