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I didn't mean it as a top-down thing but as an aligned goals thing. If you do this you're basically paying a 7-10% tax on everything you do, forever, without th
by kyleyeats 2y ago
I didn't mean it as a top-down thing but as an aligned goals thing. If you do this you're basically paying a 7-10% tax on everything you do, forever, without the hyper-growth to justify/offset it. It's like selling out to Hollywood and then only doing bit roles. If you do YC, you should take VC. You would be stupid not to. I mean, YC is VC, right? It's a consistency thing.
No-YC and no-VC makes sense. Yes-YC and yes-VC makes sense. Yes-YC and no-VC does not make sense.
- robocat 2y agoPaying 7-10% tax is a fabulous expense for founders if that leads to company growth >10% (ignoring smallprint). Certainly that's a reasonably likely outcome. "Hyper growth" is irrelevant. Do the benefits exceed the costs? That's a harder thing to judge. Worthwhile reading https://paulgraham.com/articles.html https://paulgraham.com/articles.html which has many articles expounding the benefits (understandably biased and unfortunately mostly pro VC). There are unfortunately very few decent articles or good data on the costs. Here's one good article against the YC SAFE: https://siliconhillslawyer.com/2019/05/01/startups-shouldnt-use-yc-post-money-safe/ https://siliconhillslawyer.com/2019/05/01/startups-shouldnt-... Sometimes compromises are needed! Not many businesses can find $500k another easier way.