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Re:YC’s $500k Standard Deal by nrudrapp on Monday January 10, 2022 @06:51PM (#29884889)
Such a good catch. Let's see that with an example.

A startup on demo day raises $25m post.

7% on 150k means it's 11.7 multiple.

And 7% on 125k means its 14.7 multiple.

That's +3x jump on every deal.

Now let's say company exited at $1b.. the difference in multiple is +100x!!

Give that person a raise YC, whoever suggested to go down to $125k.

As somebody else has suggested below. This 375k is mostly cheaper way of buying prorata at series A

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