Re:The Handshake Deal Protocol
by barry-cotter on Thursday March 14, 2013 @07:44PM
(#5378339)
Reputation among what group is the question. I'm guessing if someone backs out on such a deal Y Combinator will remember, pass it on, fail to invite to Demo Day. This protocol works to YC's benefit even if the information never spreads beyond employees, participants and alumni. Any spillover is a bonus.
And what exactly might be the method of shaming? A blog post? A central repository of shame? It's not like there is going to be some ebay type feedback system on investors that will take into account investors failing to live up to their promises. New entrepreneurs are hatched everyday. The "reputation" that an investor earns will have to be etched pretty clearly for them to find that info and believe it's ubiquity.