@grounded Oh the GPS are saying the lps are happy? From someone who used to work there? Was the growth fund not an organizational failure and a distraction? Did batch size not get out of control?LPs aren’t pleased all across the VC world right now. Stop pretending YC is immune to this.
You literally sit on Reddit defending anyone who says anything remotely disparaging about YC. Many successful startups applied to and were rejected by YC. I bet if you asked the partners you’re friends with if they ever had any missed, they would say yes. Correlation isn’t causation. There’s more funds than ever deploying early-stage capital.
@grlpower Yes that’s what I’m saying. Growth fund wasn’t a failure lmao - they made them money. They actually closed the $1B second continuity fund they went out to raise, but the new leadership wanted to focus on early stage fully, so now that billy is set aside to support the existing continuity investments and rolled into the main fund, for pro-rata follow ons for all YC cos (not just those accepted into the growth program)
Which I agree with as an alum - the signal to companies not selected to the growth program is bad for community and YC should realign and focus on what they’re best at - early stage. PG (still a major LP) has been pushing for this forever.
I agree VC in general is on the hot seat after ZIRP but let’s not pretend YC is going away anytime soon.
@grounded I don’t think YC is going anywhere either. My point is more that all VCs can be fallible and I think some more of that is catching up to YC in recent batches. This was a post about critical posts being scrubbed from the sub. And I think the discussion on what’s actually happening is good for the founder community to hear about how those across the aisle are thinking.
@grlpower Fair enough! As a founder who’s been there before I just find it incredibly detracting to read people criticizing startups and founders who’ve only just begun their journey. Let them build and criticize them in a few years, not when they’re just preparing to get out the gate.
@grounded Agreed on criticizing founders -- Wasn't necessarily trying to do that. I think there's a perception from founders that it is YC or bust and that's just not healthy or accurate. There are plenty of funds out there deploying capital. There are plenty of companies and founders who applied to YC and were rejected and are now at unicorn status or better. There's a clear thesis to YC that worked extremely well and while we might not agree on this part, its my opinion, the effectiveness of that thesis is slowing down. Probably a combination of many things driving that, the bar being raised for everyone raising early-stage funding meaning if I have significant revenue, YC's SAFE terms might not be the best for me. Finding more investors who I feel like I may get better value from and accelerate my company faster. Also, yes there were a lot of us saying the wrapper game was dangerous for quick fast growth with no moat and I think at least one YC Partner should have been saying that.
@johnhus1966 it's a bit obnoxious towards the majority of people, including us, rejects, the VC philosophy of - I can invest in 100 companies and have 99 of them fail if one of them multiplies by 1000.- It might work but it doesn't seem right, seems a bit random
Anyway, YC knows much more than us. What I can say is that they seem to like people with punchable faces. Like why everyone on the most watched YC videos have punchable faces?
@windinmysails You just described the vc startup relationship. If you’re not interested in playing that game, do not do yc and do not raise vc money. There are other ways to start a company.
@windinmysails Huh?
It sounds like you just don’t want to start a vc backed company. That’s great! There are lots of other things to do. Vcs didn’t make it this way. It’s just basic economics. Risk capital requires risk.
@windinmysails We’re talking past each other. Vc is not the be all end all. It has produced some incredible companies. It has burned a lot of money. Lots of lps have gotten great returns, lots haven’t. If you don’t want to start a vc backed company you don’t have to. Why are you in the yc sub?
@windinmysails nothing in life is fair, even in startups, the best founders know this and they always capitalize/capture their luck for maximum benefit. also yc is compromised of literally the most wholesome folks in the valley, have you talked to other vcs?
@ieltsielts I am old and had some startups. Not trying other VCs because I can grow organically and also I found the YC share interesting in relation to the capital, plus the learning experience.
@declansdad you guys are way too conformed.. a startup founder should be more revolted towards injustice of any kind
from what I read in some other posts it seems like YC isn't even making much money lately, so basically it's becoming a non profit donating to weathy A+ americans
@declansdad I'd expect you to stand up if you think something is wrong. Regardless of monitoring and doxxing that may occur here.
That's what I'd expect from an outlier founder. Think Adam Neumann, if that guy didn't agree to something he'd say it.. Although his company is under he managed to get away early.
