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Y Combinator Gets The Sequoia Capital Seal Of Approval

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Re: Y Combinator Gets The Sequoia Capital Seal Of Approval

#5
post #2

Enormous. Shows the YCombinator model is working, or in the future it'll be working. (which it will)

I think this could be a way for Sequoia/Ron Conway to find good companies ahead of other investors. This way, they'll know all about the current crop of YC companies and will be able to spot the winners from day 1.

After all as investors, pg would probably have to report what companies he has selected for the program

Re: Y Combinator Gets The Sequoia Capital Seal Of Approval

#6
post #3

Question for paul: your limiting factor is not money, but time, right? Are you just going to say yes to more interviewees or will you interview more startups? Will YC alums take a more active role between funding and demo day?

I don't think his time (or really, all 4 YC founders' time) was the reason YC started small. YC is an experiment, and you don't want to fund 100 startups at once if you're not quite sure what you're getting into. Now that they've learned from several cycles, they can start to scale up responsibly. At the same time, you don't want to start too small and inhibit the learning process.

Re: Y Combinator Gets The Sequoia Capital Seal Of Approval

#7

I really don't understand this. Why would YC want to manage a fund and investors? Is it more likely to get Sequoia to invest down the road?

I also worry that it will hurt YC companies raising angel/VC money after YC. If these angels and Sequoia pass, won't other investors think that something is wrong with the company?

Re: Y Combinator Gets The Sequoia Capital Seal Of Approval

#8

I really don't understand this. Why would YC want to manage a fund and investors? Is it more likely to get Sequoia to invest down the road?

aren't you over thinking this? YC simply took fund to expand their current operations.

Sequoia merely put money in, its like thinking the people that put money in the Sequoia funds get involved in who Sequoia finances.

Re: Y Combinator Gets The Sequoia Capital Seal Of Approval

#9

I really don't understand this. Why would YC want to manage a fund and investors? Is it more likely to get Sequoia to invest down the road?

I guess they don't have enough cash in the bank to keep investing half a million dollars twice a year with no mostly returns for 7+ years (typical time for a start-up to become valuable).

Re: Y Combinator Gets The Sequoia Capital Seal Of Approval

#10
Hmm, legal question here, since I don't know exactly how this deal is arranged. Is this a fund in the traditional angel/vc model, or do they just now own a chunk of Y Combinator? And if so, do they therefore own a small chunk of past YC companies still in the portfolio?

If so, it would seem my startup is now partially owned by some of the many angels and VCs who turned us down, which will really kill some of my revenge fantasies :)

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