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Well maybe my example is unlikely, although one could argue that the YC brand is worth something in that it will let you raise more from other investors. Howeve
by eloff 13y ago
Well maybe my example is unlikely, although one could argue that the YC brand is worth something in that it will let you raise more from other investors. However, it doesn't need to be so extreme, just that companies that are further along are less risky to YC and it seems strange for YC to artificially offer higher than market prices to said company thus lowering demand. Why would YC want fewer lower risk companies and more high risk ones? The incentives don't seem rational to me.
- IgorPartola 13y agoI see this often, but I am starting to think this is a fallacy. A company can be further along down the wrong path, making it harder to undo the bad things it had done up to that point. A company can be based on an unsustainable idea and no amount of work put into it will ever make it viable. I have a feeling that real-world data is much more interesting than this. I imagine the risk curves are not strictly decreasing with progress from idea to product with users, and I bet YC could shed some light on this by showing when companies actually close down vs when they start at YC.