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Investing in a company based on its acceptance into YC? Hm. Also, I think this breaks the model a bit, I thought the point of the initial small(er) investment w
by citricsquid 16y ago
Investing in a company based on its acceptance into YC? Hm. Also, I think this breaks the model a bit, I thought the point of the initial small(er) investment was to drive creation of a product or business model that could then expand naturally or take further investment once they've proven the products value/viability etc. I guess for some it would be a bonus, but for some it might be a curse?
Although "Paul Graham seemed very pleased" implies it doesn't, so I figure I'm wrong. Maybe it is for the better, especially when it's optional...
- forensic 16y agoThe model has changed. Now it's about the ability of Paul et al. to pick horses. (Also the Ycomb environment and all that too)
- jacquesm 16y agoYes that's the best way of putting it. YC is seen as a vetting agent that has so much experience in evaluating start-ups now that their ability to separate the wheat from the chaff makes a deal like this feasible. How long before a major VC steps in to offer a third round for those that get to some pre-set goal to every YC funded company that took the second round too?