3 ms·
> Y Combinator invest $150K in startups for a 7% slice of equity, by comparison, a $20K investment from Pioneer will cost founders 5% of their company plus the
by awb 7y ago
> Y Combinator invest $150K in startups for a 7% slice of equity, by comparison, a $20K investment from Pioneer will cost founders 5% of their company plus the 1% they gave up to join the accelerator in the first place.
The 1% for advice, status, etc. sounds like a good deal. $20k for 5% though sounds really steep unless you're planning on a very low exit (under $1M).
- baristaGeek 7y agoDisclaimer: I'm one of the founders being backed. Not really. YC used to invest that amount 10 years ago for 6-7%. Airbnb, Dropbox, Stripe, etc. were definitely not planned for "very low exits." These days people get into YC with pretty elaborate stuff. I think that an underrated founder with just an idea or an mvp with little or no traction, wouldn't get into YC today (think Airbnb, Reddit, etc.). Pioneer is building a model to invest in deals earlier in the pipeline. It will probably give them outsized returns in the future.