3 ms·
What if they added in a right to invest a certain amount in future rounds, such that they don't lead the growth?
by philip1209 11y ago
What if they added in a right to invest a certain amount in future rounds, such that they don't lead the growth?
- MangoDiesel 11y agoThey don't want to do this, because they don't want to become a "stamp of approval" for companies coming out of YC. Specifically, if a company comes out of YC and is looking to raise further funding down the road, it becomes an important data point if YC decided to continue investing with them or not. By not participating in future rounds as a policy, they avoid this potential issue.
- cactusface 11y agoWhy is it important not to pick favorites? Are they trying to avoid killing companies they thought were bad but end up good later on?
- deleted 11y ago[deleted]