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Correct me if I'm wrong, but isn't it likely that the angels involved also make up a strong percentage of the people who invest on Demo Day in post-YC companies

Correct me if I'm wrong, but isn't it likely that the angels involved also make up a strong percentage of the people who invest on Demo Day in post-YC companies? How can it be a "PG vs Angels" situation when the parties involved are likely some of YC's portfolio companies biggest "supporters"?

jeromec 16y ago
Correct me if I'm wrong, but isn't it likely that the angels involved also make up a strong percentage of the people who invest on Demo Day in post-YC companies? Yes, I believe so. How can it be a "PG vs Angels" situation when the parties involved are likely some of YC's portfolio companies biggest "supporters"? That question might be better put to those Angels in the bar...
- mhendrick 16y ago
  I'm not defending the angels involved by any means; I actually think it's a great thing that this has been exposed if it is indeed what's been going on. The easy access to YC companies may in fact be what emboldened them to act in this manner in the first place. Once this all plays out, I think it's safe to assume that at least a few of the angels in question are going to have to answer for their actions. Should be interesting to hear what they have to say.
MediaSquirrel 16y ago
YC is the seller, angels at Demo Day are the buyers. Just cuz you work with someone closely doesn't mean you won't or can't try to screw them.
- mhendrick 16y ago
  Agreed. It's possible they got a bit overconfident in their respective positions because of the easy access to so many well-vetted companies.
- redrobot5050 16y ago
  Yeah. I mean, look at the JooJoo/CrunchPad Debacle. According the Mike A., that's exactly what happened.
brc 16y ago
One of the outputs from the YC process is better educated founders who have a lot more guidance in negotiating through a deal. Even if the deal flow was exactly the same, just having the founders suffering less from information assymetry would be a stone in the shoe of the Angels. Think of it this way : if YC did all the same things, but also turned founders into being Angel patsies at dealtime, do you think they would be upset about it? I would guess it's the information about how to negotiate, and what a good deal looks like is the problem. I'm sure they love the concept of demo-day to go deal shopping, but would prefer it if the products didn't talk back.

jeromec 16y ago

Correct me if I'm wrong, but isn't it likely that the angels involved also make up a strong percentage of the people who invest on Demo Day in post-YC companies? Yes, I believe so. How can it be a "PG vs Angels" situation when the parties involved are likely some of YC's portfolio companies biggest "supporters"? That question might be better put to those Angels in the bar...

mhendrick 16y ago
I'm not defending the angels involved by any means; I actually think it's a great thing that this has been exposed if it is indeed what's been going on. The easy access to YC companies may in fact be what emboldened them to act in this manner in the first place. Once this all plays out, I think it's safe to assume that at least a few of the angels in question are going to have to answer for their actions. Should be interesting to hear what they have to say.

MediaSquirrel 16y ago

YC is the seller, angels at Demo Day are the buyers. Just cuz you work with someone closely doesn't mean you won't or can't try to screw them.

mhendrick 16y ago
Agreed. It's possible they got a bit overconfident in their respective positions because of the easy access to so many well-vetted companies.
redrobot5050 16y ago
Yeah. I mean, look at the JooJoo/CrunchPad Debacle. According the Mike A., that's exactly what happened.

brc 16y ago

One of the outputs from the YC process is better educated founders who have a lot more guidance in negotiating through a deal. Even if the deal flow was exactly the same, just having the founders suffering less from information assymetry would be a stone in the shoe of the Angels. Think of it this way : if YC did all the same things, but also turned founders into being Angel patsies at dealtime, do you think they would be upset about it? I would guess it's the information about how to negotiate, and what a good deal looks like is the problem. I'm sure they love the concept of demo-day to go deal shopping, but would prefer it if the products didn't talk back.