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Basically, he's investing in everything that YC is investing in, except he's investing at much worse terms than YC gets (that is, YC typically invests in compan
by hugh3 16y ago
Basically, he's investing in everything that YC is investing in, except he's investing at much worse terms than YC gets (that is, YC typically invests in companies at a valuation of a couple of hundred grand, while Series A rounds are typically at a significantly higher valuation than that). It may, in the end, pay off, but I don't think it's a good investment strategy to follow someone else's investments and pay systematically more than they did.
- jackowayed 16y agoHe's getting much worse terms, but he's also doing a lot less work. YC picks the companies, does office hours, finds speakers for dinners, cooks the dinners, works out deals like this one and the Facebook one, etc.
- bretpiatt 16y agoThe terms are only worse in the beginning, the YC organizers do not have a $1B fund to lead on A, B, C rounds and beyond. Because of the ability to double down on the winners the terms may actually be better than what the YC team gets.