"Graham concedes that individual YC partners have invested in a few startups that hadn't been able to attract much outside funding."
Interesting that Paul, Trevor, Robert, and Jessica (maybe Harj and Alexis now?) will backstop companies that can't raise outside money after YC. It's like the exact opposite of the signaling problem.
The first couple years I used to participate in a lot of the startups' angel rounds. Now I hardly ever do. I didn't invest in any of the startups from the most recent batch, for example.
Partly because I don't have as much spare money (because I bought an expensive house in Palo Alto and haven't sold my Cambridge house yet) and partly because I don't need to as much.
Comments
"Graham concedes that individual YC partners have invested in a few startups that hadn't been able to attract much outside funding."
Interesting that Paul, Trevor, Robert, and Jessica (maybe Harj and Alexis now?) will backstop companies that can't raise outside money after YC. It's like the exact opposite of the signaling problem.
The first couple years I used to participate in a lot of the startups' angel rounds. Now I hardly ever do. I didn't invest in any of the startups from the most recent batch, for example.
Why the change?
Partly because I don't have as much spare money (because I bought an expensive house in Palo Alto and haven't sold my Cambridge house yet) and partly because I don't need to as much.
It's not just them. YC has produced a good number of qualified investors at this point. ;)