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I've been wondering this, so here goes. By accepting this money, is YC basically saying that $10-20k isn't enough to startup? Or at least that having the next

by qeorge 16y ago

I've been wondering this, so here goes. By accepting this money, is YC basically saying that $10-20k isn't enough to startup? Or at least that having the next $150k promised is beneficial to startups in general? If that's true, why doesn't YC just give more money to teams to begin with? I thought the low amount was part of the secret sauce - constraints leading to creativity and all that.

cosgroveb 16y ago
YC isn't accepting this money. YC doesn't seem to be saying 10-20k is not enough to startup. This money is being offered directly to YC companies and if I've followed the news correctly there is no contract or formal agreement between these investors and YC. That being said, I think YC has probably funded startups knowing that they would need far far more than 20k to properly startup. That's what demo day is for.
- deleted 16y ago
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rcavezza 16y ago
YC isn't accepting money. They called a meeting to tell their startups that Yuri will be offering this deal to each of them. I don't think this changes much. Most YC companies get funding anyway after the program. This is yet another great opportunity YC's startups.
brudgers 16y ago
My understanding is that seeking funding was taking up large amounts of time at YC, and that the belief was that the time could be better spent improving the products, pivoting, gaining customers, etc. It looks like providing funding will allow PG and company to focus more on nutruring and improving entrepreneurial teams than connecting them with funding.
zachallaun 16y ago
YC isn't accepting anything; YC startups are accepting the investment. Pg addressed this in another thread [1]. It is quite obvious that, assuming your desire is to quickly scale your startup, $10-20k isn't enough. That's why YC has always had demo day, the goal of which is to secure investment. Even still, that day will remain important; Yuri didn't change that. As an answer to your second line of questioning: Have you ever considered the cash value of "free" resources offered to YC companies? YC could just invest a lot of money, or they could provide mentorship opportunities and resources. They chose the latter (obviously), and have had clear success in doing so. [1] http://news.ycombinator.com/item?id=2156560\ http://news.ycombinator.com/item?id=2156560\ [edit] Haha... three other posts in the time it took me to find pg's response...

by qeorge 16y ago

cosgroveb 16y ago

YC isn't accepting this money. YC doesn't seem to be saying 10-20k is not enough to startup. This money is being offered directly to YC companies and if I've followed the news correctly there is no contract or formal agreement between these investors and YC. That being said, I think YC has probably funded startups knowing that they would need far far more than 20k to properly startup. That's what demo day is for.

deleted 16y ago
[deleted]

rcavezza 16y ago

YC isn't accepting money. They called a meeting to tell their startups that Yuri will be offering this deal to each of them. I don't think this changes much. Most YC companies get funding anyway after the program. This is yet another great opportunity YC's startups.

brudgers 16y ago

My understanding is that seeking funding was taking up large amounts of time at YC, and that the belief was that the time could be better spent improving the products, pivoting, gaining customers, etc. It looks like providing funding will allow PG and company to focus more on nutruring and improving entrepreneurial teams than connecting them with funding.

zachallaun 16y ago

YC isn't accepting anything; YC startups are accepting the investment. Pg addressed this in another thread [1]. It is quite obvious that, assuming your desire is to quickly scale your startup, $10-20k isn't enough. That's why YC has always had demo day, the goal of which is to secure investment. Even still, that day will remain important; Yuri didn't change that. As an answer to your second line of questioning: Have you ever considered the cash value of "free" resources offered to YC companies? YC could just invest a lot of money, or they could provide mentorship opportunities and resources. They chose the latter (obviously), and have had clear success in doing so. [1] http://news.ycombinator.com/item?id=2156560\ http://news.ycombinator.com/item?id=2156560\ [edit] Haha... three other posts in the time it took me to find pg's response...