Yes, it's a different risk profile that doesn't suit all businesses. VCs are in the business of power-law returns: They're looking for homeruns, not base hits.

Yes, it's a different risk profile that doesn't suit all businesses. VCs are in the business of power-law returns: They're looking for homeruns, not base hits. It's really important for founders to select the right sources of capital for their business. The good news: YC itself is a pretty good actor on that front -- the new $500k uncapped SAFE helps founders retain optionality without fully committing them to hypergrowth trajectories.