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It's a lot easier to get third-party investment once you've successfully sold a startup, and it's much less risky than pouring your own cash into your next vent

It's a lot easier to get third-party investment once you've successfully sold a startup, and it's much less risky than pouring your own cash into your next venture. I'd say it's far from a foregone conclusion that you'd put a large amount of your own money in. I'd have to add that YC isn't exactly your average startup though, and the founders putting their own money in sends a much stronger message of dedication to potential participants.

aaronsw 18y ago
I think the real factor is control. Does Paul Graham really seem like the guy who would want a boss if he could avoid it?
- icey 18y ago
  Well, he _did_ just get married.
- pmjordan 18y ago
  Good point; also, investors want some kind of chance or indication that the company will exit. I can't imagine that's planned for YC. In any case, I'll take your word for it as you definitely know Paul better than I do. ;)
pg 18y ago
It would be easy to raise money if we wanted to, but we don't need it. The investment required is not so great that it's dangerously large for any of us.