This is awesome. It's great to see big money split up into lots of small investments. I've always wondered what would happen if Microsoft took 1 billion dollars and make 10K $100K angel investments. Something amazing would surely come out of so many trials. Traditionally, that 1 billion (if invested in startups) would be doled out in 100 or so $10MM-ish chunks, mostly to later stage companies.
Yuri Milner, SV Angel Offer Every New Y Combinator Startup $150k
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Re: Yuri Milner, SV Angel Offer Every New Y Combinator Startup $150k
#22Wow, amazing deal. Only time will tell if its good for them or not.
Re: Yuri Milner, SV Angel Offer Every New Y Combinator Startup $150k
#23So this investment isn't at a valuation and the valuation is only decided at a future round at which point this converts into an amount of equity based off that valuation? I've read about convertible notes before just a little confusing at first.
Right. $150,000 paid in advance. Whenever the company raises its first significant money (usually >=$1M) that $150,000 buys equity at the same rate the new investors are paying.
Re: Yuri Milner, SV Angel Offer Every New Y Combinator Startup $150k
#24Web startups are now rock bands, and YC is the record label.
Re: Yuri Milner, SV Angel Offer Every New Y Combinator Startup $150k
#25Holy shit. The word "disruptive" is overused but it's pretty applicable here. Crazy. But is this fair to other angels/investors?
Capitalism happens. plays tiny violin
Less sardonically: if YC is so ridiculously superior to other investment models that investing money at these terms is profitable knowing nothing of the actual company invested in, then the system is broken. This is the market's corrective measure, attempting to come up with a better approximation of the true value of early stage startups. Might it discomfit people who made a lot of money when it was broken? shrug
Re: Yuri Milner, SV Angel Offer Every New Y Combinator Startup $150k
#26Every YC batch should have at least 1-2 big wins. They're betting that it's more important not to miss out on those than to save a little money trying to pick the winners. A great strategy if you can afford it.
Re: Yuri Milner, SV Angel Offer Every New Y Combinator Startup $150k
#27I saw on the news it was going to rain tonight; I didn't realize they meant that in Mountain View it would be raining money.
Re: Yuri Milner, SV Angel Offer Every New Y Combinator Startup $150k
#28And the collective of the YC W'11 hopefuls just let out a wistful sigh. At least I did.
Re: Yuri Milner, SV Angel Offer Every New Y Combinator Startup $150k
#29...and they said good guys finish last? PG seems to be proving them wrong, every day.
Re: Yuri Milner, SV Angel Offer Every New Y Combinator Startup $150k
#30High five, pg!