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But if they increased the amount of money significantly, they'd more than likely have to increase the amount of equity and decrease the amount of investments. T
by fallentimes 18y ago
But if they increased the amount of money significantly, they'd more than likely have to increase the amount of equity and decrease the amount of investments. This would really take away from what YC does.
- brlewis 18y agoIf we take pg's 95% literally and define YC's current contribution to a startup as 100%, then if they give 3x as much money their contribution to the startup becomes 110% of what they contribute now. So they would demand 10% more equity.
- pg 18y agoYou're right that we wouldn't take too much more equity. (In fact, the last time we increased the amount we invested, we didn't ask for any more equity.) But if we invested more per startup we'd tend to become more conservative. We'd think twice about investing in some of the riskier projects, and that's the last thing we'd want.