3 ms·
In 2020, YC cut the standard deal from 150k to 125k, while still preserving the 7% equity (and the 4% pro rata). To sell a solution, first create a problem ;)
by dannyw 5y ago
In 2020, YC cut the standard deal from 150k to 125k, while still preserving the 7% equity (and the 4% pro rata).
To sell a solution, first create a problem ;)
- nrudrapp 5y agoSuch a good catch. Let's see that with an example. A startup on demo day raises $25m post. 7% on 150k means it's 11.7 multiple. And 7% on 125k means its 14.7 multiple. That's +3x jump on every deal. Now let's say company exited at $1b.. the difference in multiple is +100x!! Give that person a raise YC, whoever suggested to go down to $125k. As somebody else has suggested below. This 375k is mostly cheaper way of buying prorata at series A