That's great (from my sofa's PoV)! If your mission is to fund youngsters and we know the story about that bank from the Silicon valley so this is the best way to save some resources.
Changes at YC
21–30 of 562 posts
Re: Changes at YC
#22I'd be very interested in the specifics of how and why late stage investing is so different that the success of YC in early stages doesn't translate.
I am not VC but I think this is kinda apparent from the get go.
In early stage you are betting on and nurturing a small team with a full-of-hope business plan. They need relatively small bits of help that can go a along way. So both "who you are chosing among" and "how you are helping them" is very specific.
With bigger companies, the team and the business plan is more proven and they need help navigating size and scaling their offering - a very different set of people you are chosing from and what they need from you.
I am sure there's a lot of additional nuance.
Re: Changes at YC
#23PG and crew have been very proud of the way they've been able to scale YC. This seems to be one of the first times where YC has failed to scale?
There have been plenty of scaling problems (my batch, S12, has been publicly referred to a few times as "the batch that broke YC" for example).
Scaling is an iterative process :)
Re: Changes at YC
#24[flagged]
Literally none of the investors in SVB were bailed out, as you cannot bail out a failed bank.
Re: Changes at YC
#25How much $ does YC make per employee?
Re: Changes at YC
#26[dead]
Re: Changes at YC
#27Weak wording the same as every other company > Unfortunately, this means we will no longer need some of the roles > Seventeen of our teammates are impacted
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Re: Changes at YC
#28I'd be very interested in the specifics of how and why late stage investing is so different that the success of YC in early stages doesn't translate.
I am not VC but I think this is kinda apparent from the get go. In early stage you are betting on and nurturing a small team with a full-of-hope business plan. They need relatively small bits of help that can go a along way. So both "who you are chosing among" and "how you are helping them" is very specific. With bigger companies, the team and the business plan is more proven and they need help navigating size and sc…
If it is, bad look for YC: obviously they did not think it was apparent, and they should be the experts.
Re: Changes at YC
#29I'd be very interested in the specifics of how and why late stage investing is so different that the success of YC in early stages doesn't translate.
Id guess that YC has a much greater competitive moat in the former. It's much "easier" to do late stage investing - a few big transactions instead of many many small ones, and everyone's working with the same information.
Very few places have the infrastructure to deal with large volumes of start-ups + a lead flow of small companies trying to join YC, so there's no acquisition costs. Add to that, YC's experience with small start-ups compounds - they can probably predict start-up success way better than competitors at this point. That's almost certainly not true for late stage investing.
Re: Changes at YC
#30> Seventeen of our teammates are impacted today. guys maybe they were impacted in a good way tho?
Maybe your question is a joke but I assume "impacted" means laid off in this context.
Kind of like when people say someone "passed away" to mean they died