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Going to 4% makes YC much more attractive. At 7% it's really hard to justify, though even at 4% for such a small investment it may be a hard pill to swallow for
by readams 7y ago
Going to 4% makes YC much more attractive. At 7% it's really hard to justify, though even at 4% for such a small investment it may be a hard pill to swallow for founders who aren't right out of college.
- daniel_levine 7y agoI believe YC is still taking an initial stake of 7%, the 4% corresponds to pro ratas and follow on deals. I think the article just messed that up
- anticsapp 7y agoYeah, I think you're right, I had trouble following the article.
- threeseed 7y agoEspecially these days where the sophistication and progress of companies look to be on a different level as each year passes. I know talking to pre-seed and seed investors that they expect you to have enough data to be able to quantify whether people really love your product. At that point you basically have customers and traction and so $150k for 7% looks like a major negative than a positive.
- quickthrower2 7y agoFor math arguments sake let's assume YC offers no value other than the cash? Would you say such companies are worth more the $2M on average?
- exolymph 7y agoMedian or mean?
- quickthrower2 7y agoI meant mean.
- deleted 7y ago[deleted]