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Sam seems to be one of the best things that's happened to YC - and extra kudos to pg for recognizing that and working so hard to grab him. The most important p

Sam seems to be one of the best things that's happened to YC - and extra kudos to pg for recognizing that and working so hard to grab him. The most important piece of this write up is concerning the rules for being part of the investor email list. This takes what was previously an informal rule (don't mess with YC companies) to a much more formalized rule. Every decent investor is going to want to be on this email list which means they are very clearly and explicitly incentivized to not screw a YC company. This will hopefully not just have a positive impact on YC companies. What I hope is that the idea of what "screwing" a company means will get further standardized which will have a positive impact on every startup around the world. i.e. a very good filter may simply be "are you on the YC list?"

donw 12y ago
Agreed. The other big news here is that they're leveling the playing field a bit, by moving away from LP (or LP-like) relationships with a collection of VC firms. Smart and classy move.
- lifeisstillgood 12y ago
  It strikes me that while it less unlevel (if that's a word) the playing field is still skewed. I have occasionally assumed that YC companies would be amount the first to use crowd-funding for their early and Series A rounds. (About a year ago there was a lot of interest in new rules allowing small investors to get more easily fleeced / access to startups and YC seemed that sort of "Brand" I would trust in that area) So yes a more level playing field for professional investors but still opaque for spreading the wealth around once the great hollowing out takes hold. (Before my socialist underpinnings are revealed I want to point out I welcome this - YC seems in good hands - I was just interested now they moved slightly in one direction, I want to see more movement !)
  - rattray 12y ago
    You might be somewhat interested in FundersClub, a YC company which has helped fund other YC companies. FundersClub does limit membership to "Accredited Investors" (rich people), but I don't believe they take steps to verify whether you qualify for this. They got their start before the new rules you mentioned, so that limitation may change soon. (CrowdTilt, which IMO democratizes crowdfunding better than Kickstarter does, is also a YC company). On a separate note, I personally think that "microbonds" would be a better model for the general public to invest in small companies for whom presales/crowdfunding don't work, as equity actually is hard for the average person to really grok.
    - lifeisstillgood 12y ago
      Is a person who does not understand equities really the sort of person who should invest in them?
blazespin 12y ago
Assuming YC cares about what investors do outside of YC...

donw 12y ago

Agreed. The other big news here is that they're leveling the playing field a bit, by moving away from LP (or LP-like) relationships with a collection of VC firms. Smart and classy move.

lifeisstillgood 12y ago
It strikes me that while it less unlevel (if that's a word) the playing field is still skewed. I have occasionally assumed that YC companies would be amount the first to use crowd-funding for their early and Series A rounds. (About a year ago there was a lot of interest in new rules allowing small investors to get more easily fleeced / access to startups and YC seemed that sort of "Brand" I would trust in that area) So yes a more level playing field for professional investors but still opaque for spreading the wealth around once the great hollowing out takes hold. (Before my socialist underpinnings are revealed I want to point out I welcome this - YC seems in good hands - I was just interested now they moved slightly in one direction, I want to see more movement !)
- rattray 12y ago
  You might be somewhat interested in FundersClub, a YC company which has helped fund other YC companies. FundersClub does limit membership to "Accredited Investors" (rich people), but I don't believe they take steps to verify whether you qualify for this. They got their start before the new rules you mentioned, so that limitation may change soon. (CrowdTilt, which IMO democratizes crowdfunding better than Kickstarter does, is also a YC company). On a separate note, I personally think that "microbonds" would be a better model for the general public to invest in small companies for whom presales/crowdfunding don't work, as equity actually is hard for the average person to really grok.
  - lifeisstillgood 12y ago
    Is a person who does not understand equities really the sort of person who should invest in them?

blazespin 12y ago

Assuming YC cares about what investors do outside of YC...