5 ms·
These terms are far from terrible. Outside of a few selected places like Silicon Valley, you can dream of getting $150K for 15% as an early stage startup with n
by acangiano 13y ago
These terms are far from terrible. Outside of a few selected places like Silicon Valley, you can dream of getting $150K for 15% as an early stage startup with no sales.
It could be argued that YC brings a lot of added value to the table, but if we are simply looking at the terms, their ~$20K for ~6% is far worse than $150K for 15%.
- loceng 13y agoThe remaining 9% though (that YC leaves on the table) could be worth at least $100k during next funding round, probably more if you expect to be successful.
- noinput 13y agoOf course but with this said: > This should help you to launch the first version of your product and to test your initial hypothesis about the market before (potentially) raising more funding to grow the business. They are shooting for helping companies who know what they need to execute do it fast and not worry about the rest, at least for a bit. After personally going through almost 6 months of angel investing diligence hell to get a similar deal, this is completely something I appreciate.
- loceng 13y agoI think YC does this too, though the costly expertise is internal, so the $20k pays for rent/food, etc.. It's definitely good to have these options, so people can make better choices for themselves / their needs - and hopefully be able to get access to what they need. :)