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Ah, can see that investors can force the company to shoot for the moon, instead of just trying to right-size the business and sell it. Very interesting!
by computerdork 2y ago
Ah, can see that investors can force the company to shoot for the moon, instead of just trying to right-size the business and sell it. Very interesting!
- robocat 2y agoYeah: VC incentives do not match with founders incentives - share classes are just one obvious signal of that. Good article on that conflict: https://siliconhillslawyer.com/2019/02/18/relationships-and-power-startup-ecosystems/ https://siliconhillslawyer.com/2019/02/18/relationships-and-... > ~9% where valuable enough for investors to take profit Or aquihired. Best analysis I have seen of YC: https://jaredheyman.medium.com/on-the-life-and-death-of-y-combinator-startups-d58aa03421f0 https://jaredheyman.medium.com/on-the-life-and-death-of-y-co... Disappointingly YC hasn't provided any good analysis for founders or employees. YC doesn't try to align founders and investors incentives - Paul mostly reads like a Venture Capitalist to me (sell founders of their good intentions but don't actually structure incentives to align). I actually think that YC is a great deal but startups are naturally a frog and scorpion system. It is hard to find better options. Finding good information is difficult and YC don't help.