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Seems like a great idea, PG. Are the partners prohibited from signalling to favored investors their intentions? What's to stop someone from giving a wink to a
by melindajb 13y ago
Seems like a great idea, PG. Are the partners prohibited from signalling to favored investors their intentions? What's to stop someone from giving a wink to a friend?
- TheCowboy 13y agoPartners who decide that they are not going to follow the rules to the detriment of the founders, and therefore YC and other partners, would likely be excluded from participating in future batches. YC is in a strong enough position that they are likely not dependent upon one particular partner, and most partners would prefer to have access to future batches. They probably don't need to have a contract that slaps on additional legal damages, because at such an early stage the small gain for favoring their own investments does not outweigh the longterm gains from continued early access.
- melindajb 13y agoTheoretically your point makes sense. But in practicality, sounds like nothing prevents a partner from winking at their buddy in a VC. After all, who's to know? And how could it ever be enforced? Insider trading didn't stop just because it became illegal. This is not in any way meant to cast aspersions on the partners per se. Color me jaded when it comes to money.