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“Don’t blame them, they just haphazardly throw money at projects without vetting them properly” Well uuhhh, maybe they shouldn’t? Would a bare minimum of due d

• tempusalaria 2y ago
  YC cannot do a ton of due diligence. Their strategy is to back many companies with small amounts of money, basically in the hope that a few companies in the batch end up as unicorns. This means they want to select founders capable of getting those outcomes, which will also select many liars/psychopaths due to the need for variance/risk taking behaviors in these founders. Now is there a problem where YC and many other VCs basically advise founders to commit fraud and lie to customers/stakeholders? Yes but that has nothing to do with YC admissions strategy. I’ve seen many VCs (including YC) advocate for lying and unethical behavior by their founders. It’s a big problem in the startup industry, and often the biggest brunt of this is taken by unsuspecting employees. One reason I would never advise someone to join a startup is the massive prevalence of unethical and dishonest founders.
  • tptacek 2y ago
    I have not (W20) seen any instances of YC advising companies to commit fraud.