3 ms·

I do agree with him on that, but ask any founder if they feel like that's a real option. Any VC pre-closing will certainly give the impression that it is not.

• malandrew 12y ago
  Unless YC goes out on a limb here and starts pushing to make it a condition for getting face-time with YC companies on demo day. IANAL, I would expect it's collusion if the startups get together and start agreeing to terms they will accept collectively. But if instead YC, a single entity, uses entrance into its demo day event, as a bargaining chip that can change the conversation around term sheets for the entire industry. i.e. make this rule: Every investor YC allows into demo day may only offer term sheets that does not require the size of the option pool to be raised until after closing the financing. Instead the size of the equity pool will be negotiated after funding closes and will be based on the amount of dilution both the founders and employees and the VCs think okay with relative to the benefit they receive from a larger pool. Individual YC companies would still be free to engage with investors outside and after the demo day event and take the less favorable terms where the option pool is negotiated ahead of time.