3 ms·

Well, what YC actually says is "not now, but please do apply again twice a year and you might get in eventually". I don't believe there's any point where they'l

by ikeboy 8y ago

Well, what YC actually says is "not now, but please do apply again twice a year and you might get in eventually". I don't believe there's any point where they'll say you shouldn't bother applying again later. This is actually quite similar to your description of other VCs. I mean, if you had to describe how a standard VC firm with the one difference is that they work in batches would reject someone, this is exactly what you'd predict - not right now, but feel free to apply again later. You can even apply in between batches although this isn't encouraged as much. They don't ever want to discourage you from giving them another shot to invest.

tptacek 8y ago
This is message board logic. You apply for a batch. You either get in or you don't. YC is clear about this. Nobody is expecting VC firms to say "no, and never reach out to us with this idea again". Maybe you haven't had the experience of raising from VCs before, so I'll relate it to you: they mostly say yes, and actually put some effort into making you believe they're actively interested, right now. They aren't. It is very difficult to know where you stand with them (right now), and they are more than willing to waste your time.
- hutzlibu 8y ago
  "and they are more than willing to waste your time. " But why? What is the motive for doing so, if they don't want you?
  - dahart 8y ago
    They have no idea whether you are something valuable or not. They are gambling, and it's their job to find undervalued companies. To them, there's zero benefit to ever closing the door. If they close the door, you won't come back, and someone else makes all the money. They will keep it open forever, in case your little company turns out to be the next Facebook or Google. They are not actively seeking to waste your time, and they are not wasting their own time. By not saying yes, and leading you on, they are telling you they don't see you as a gold mine yet.
  - tptacek 8y ago
    First, there's an asymmetry in effort; it costs them very little to ask for things (keeping them informed on progress, having due-diligence calls with their network, &c) that can cost you a lot to provide; second, in exchange for their minimal efforts, they get optionality, which negates FOMO, which is the real reason they invest. Maybe things have changed in the last couple years, but for first raises for companies, this wasn't like, "a thing that happens sometimes"; it is the normal, standard behavior of VC firms. People who are good at raising have strategies for dealing with it.
  - tedunangst 8y ago
    If you're actually successful and raise money elsewhere, they miss out. Better to keep you around so they can wedge in if something happens.
  - nl 8y ago
    Things change. Timing is a big factor in tech companies. Ideas which didn't work in 2010 can work now. Also you can come back with more proof of your thesis.

by ikeboy 8y ago

tptacek 8y ago

This is message board logic. You apply for a batch. You either get in or you don't. YC is clear about this. Nobody is expecting VC firms to say "no, and never reach out to us with this idea again". Maybe you haven't had the experience of raising from VCs before, so I'll relate it to you: they mostly say yes, and actually put some effort into making you believe they're actively interested, right now. They aren't. It is very difficult to know where you stand with them (right now), and they are more than willing to waste your time.

hutzlibu 8y ago
"and they are more than willing to waste your time. " But why? What is the motive for doing so, if they don't want you?
- dahart 8y ago
  They have no idea whether you are something valuable or not. They are gambling, and it's their job to find undervalued companies. To them, there's zero benefit to ever closing the door. If they close the door, you won't come back, and someone else makes all the money. They will keep it open forever, in case your little company turns out to be the next Facebook or Google. They are not actively seeking to waste your time, and they are not wasting their own time. By not saying yes, and leading you on, they are telling you they don't see you as a gold mine yet.
- tptacek 8y ago
  First, there's an asymmetry in effort; it costs them very little to ask for things (keeping them informed on progress, having due-diligence calls with their network, &c) that can cost you a lot to provide; second, in exchange for their minimal efforts, they get optionality, which negates FOMO, which is the real reason they invest. Maybe things have changed in the last couple years, but for first raises for companies, this wasn't like, "a thing that happens sometimes"; it is the normal, standard behavior of VC firms. People who are good at raising have strategies for dealing with it.
- tedunangst 8y ago
  If you're actually successful and raise money elsewhere, they miss out. Better to keep you around so they can wedge in if something happens.
- nl 8y ago
  Things change. Timing is a big factor in tech companies. Ideas which didn't work in 2010 can work now. Also you can come back with more proof of your thesis.