Exploding Offers Suck
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Exploding Offers Suck
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Re: Exploding Offers Suck
#2Is this a change for YC? YC previously required getting an answer the day you're accepted because "you have all the information". So this is an update to allow people time to decide, right?
I always found the justification of having all the information a bit self centered. Founders have all the information... about YC, but not about other options.
That said, as a YC alum, I think you should almost certainly say yes if accepted.
Re: Exploding Offers Suck
#3Is this a change for YC? YC previously required getting an answer the day you're accepted because "you have all the information". So this is an update to allow people time to decide, right? I always found the justification of having all the information a bit self centered. Founders have all the information... about YC, but not about other options. That said, as a YC alum, I think you should almost certainly say yes i…
only in the early years of YC did we require an answer right away.
as much time as the founders want has been the unofficial policy for awhile, but i thought it was time to share it.
Re: Exploding Offers Suck
#4Academic here: Doesn't this post state that the offer has a 45-day duration?
Are offers that "explode" only a few days in duration?
Re: Exploding Offers Suck
#5This seems like a step forward. Exploding offers are generally unpleasant, usually a power play from the side that has less to lose.
It's also common practice for companies to extend exploding offers to new hires. Replace "accelerators" with "companies" and "founders" with "hires" and you get a very similar argument for not forcing people to take a job until they've completed their own decisionmaking process (this ultimately benefits the company as well, in my opinion).
Re: Exploding Offers Suck
#6It is pretty clear to see whats going on:
It is without question that most people applying to incubators apply to a few of them, in case they don't get into the (obviously) best one, YC.
Its my guess that some of the less exciting incubators give these exploding term sheets to make the founder think:
"Damn, I got into Incubator X but I have to say yes in 48 hours. I wonder if I will get accepted into YC also when answers go out in 2 weeks. Should I risk walking away with nothing, or just take the offer I have now..."
Would not be surprised to see more incubators doing this anyways, with or without exploding term sheets. They will likely just move up the dates their sessions start (and the date you need to say yes by), to make sure its before YC answers go out.
On the same hand, I am not sure what you expect other incubators to do. YC is hands down the most prestigious incubator to get into and everyone knows that. So, you have a bunch of other incubators that have to think scrappy to get people into their programs. These guys don't just want YC's cast-offs, after all.
If YC was to start doing rolling acceptances for a start date, it would solve the issue of other people doing exploding term sheets. If I apply to YC today for the winter batch and can interview and get a yes in a few weeks, then the motivation for other incubators to do this behavior is gone.
YC partners need to realize they are the cause of other incubators giving out exploding term sheets. I know YC likes to make a event of doing all the interviews/acceptances on one day, but it would certainly be much more entrepreneur friendly to have it be rolling admissions. The start dates for sessions can still remain the same of course.
Re: Exploding Offers Suck
#7Academic here: Doesn't this post state that the offer has a 45-day duration? Are offers that "explode" only a few days in duration?
Clearly, no offer (in any realm) will ever be perpetually valid. Giving a reasonable amount of time to evaluate options and make a better decision is considerably less explosive than one that puts an artificially tight deadline on the decision.
Re: Exploding Offers Suck
#8Academic here: Doesn't this post state that the offer has a 45-day duration? Are offers that "explode" only a few days in duration?
I would think it odd for any kind of business deal to be extended and awaiting a response without any kind of deadline at all.
I think exploding in this sense is more "this offer comes off the table at midnight" kind of stuff.
Re: Exploding Offers Suck
#9A dear friend and excellent negotiator told me that when he gets any kind of short-term exploding offer, the first thing he does is verbally reject the deadline. And the second thing he does is ignore the deadline and offer feedback only after it has passed.
I've seen him employ this many times in practice and it has always worked out. I don't want to be responsible for anyone losing a deal, but remember: when someone offers you an exploding offer, it's because they really, really want you to take it. If anything, it should be a sign there's (a) more time to be had, and (b) plenty of room on the terms.
Any deadline claim has to be concrete and believable. The start of the YC program is a good example.
Re: Exploding Offers Suck
#10What if you accept the exploding offer and then break the contract or avoid to sign it?