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So now if you are a YC company and YC declines to invest, every other investor loses out. Does this not strongly dilute the power of being in YC? Seems nuts to

• mattmireles 6y ago
  No, the opposite. Every other investor wins because they can invest more $$$ and own a bigger % of the company. Before, YC had a right to maintain its 7% stake, leaving less room for new investors to acquire ownership.
  • chii 6y ago
    if YC doesn't invest, won't that be a signal that they don't believe the 7% is worth it? it makes it hard for startups that would need more money to prove their profitability to lose out on new rounds, or have to give up more for those rounds (as investors will need better incentive to invest without the YC signal).