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The $80k is not invested by YC. I get the impression from some of the threads about this that people don't realize that. YC still invests $11k + $3k per found
by pg 14y ago
The $80k is not invested by YC. I get the impression from some of the threads about this that people don't realize that.
YC still invests $11k + $3k per founder, as we've done for years. The $80k is a separate, additional investment offered by third parties.
- edanm 14y agoThe article definitely reads as though YC is, at the very least, completely in charge of this money. I know that it's not true, as do other older members, but I wouldn't be surprised if new members get the wrong impression.
- tptacek 14y agoThis is an 80k sight unseen investment conditioned solely on acceptance into a YC batch. YC controls it in the sense that they control the batches, but you could fund your own YCXC program that offered $x0,000 to each company in each YC batch. It would succeed or fail to the extent that individual YC companies, all of which completely control their own operations, decided to take you up on it.
- netcan 14y agoFrom the perspective of the startups, is this an important distinction?
- tptacek 14y agoSure. The YC investment comes with a valuation; they take X% of your company for their funds. The YCVC money is convertible debt and defers valuation to the next round.
- netcan 14y agoBut candidates can view the whole thing as a package can't they? $x at A% valuation + $y at deferred valuation. If a startup needs $95k investment to get started, YC is a viable place to get that. Isn't it?
- gadders 14y agoAh, so this is the $150k that all YC companies were being given regardless? [1] [1] http://techcrunch.com/2011/01/28/yuri-milner-sv-angel-offer-every-new-y-combinator-startup-150k/ http://techcrunch.com/2011/01/28/yuri-milner-sv-angel-offer-...