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Is placing bets on competing companies that against YC's business model? Like I'd assume the best case for YC's business model is to pick a winner, fund them,
by Macha 1y ago
Is placing bets on competing companies that against YC's business model?
Like I'd assume the best case for YC's business model is to pick a winner, fund them, sell off at the company's peak, then find a competitor likely to unseat them and fund that competitor so they can enjoy the profits of capturing the same market again.
- bix6 1y agoIs it fair for someone with privileged information to back a direct competitor? I say no but YC clearly thinks otherwise.
- roncesvalles 1y agoYeah, to me that’s always been the obvious most "expensive" part about doing YC. It’s not the chunk of equity, it's that they now know everything about your company, your road map or ideas, and the way you think and operate. And that's a pretty good deal for whatever little money they're spending on you. The whole thing has a "frenemies" vibe.
- deleted 1y ago[deleted]
- jacquesm 1y agoFor many investors that's a bridge they will not cross because it will always lead to conflicts of interest.