5 ms·
No, you're missing the point. I wasn't arguing against YC, but against VC money. YC doesn't have liquidation preferences, and if it did, the multiple of $20k
by BitGeek 19y ago
No, you're missing the point. I wasn't arguing against YC, but against VC money.
YC doesn't have liquidation preferences, and if it did, the multiple of $20k would be so small its not really relevant in this discussion.
- nostrademons 19y agoWhy the "YC says you go to the loan shark and pay %400 for your money" then?
- BitGeek 19y agoBecause those are the terms that VCs offer, and the YC program is organized around getting a VC investment
- nostrademons 19y agoFirstly, that's not my impression of YC. Reddit took only angel funding before being acquired. Very few of their startups actually seem to take VC: the ones I can think of are Loopt and Scribd. Most use angel capital only. If you actually had paying customers at the end of the 3 months, I doubt YC would object to simple revenue-based growth. Secondly, what do you propose instead? Most banks will not give bank loans to revenue-less Internet startups, because they have no guarantee of being repaid. Bootstrapping off savings is ideal (it's what I'm doing...), but not every idea is bootstrappable.