Can you comment on why so few YC companies have raised from them?
My comments have received a total of 53 points. KV has tried suing thefunded. And big, successful startups haven't taken his money.
(InterviewStreet isn't listed because they haven't added their funding data to Crunchbase; there may be others like this, too.)
Vinod's been at this far long enough to judge his results. He gets his ROI but at the expense of founders. That's why we don't see him in the upper echelon and where his marketing doesn't match what is known among knowledgeable parties.
Most YC companies are addressing markets and challenges that are ideal fits for KV. There are probably 10 companies or so that would (even with the benefits of hindsight) been quintessential Series A candidates for us.
Footnote: I write this as someone who loves YC and has personally invested in over a dozen YC companies.
I wish you luck. Good Vinod can be as fine a partner as any, I'm sure. It's just the history of Bad Vinod, and how he has treated founders, that holds the firm back. His partners end up more as minions than a check on his ego.
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oh boy I am sooooo going to be in the next round :-)
Also, the second-worst story I've heard of "WTF???" VC negotiations over the past couple of years was with Khosla. (That said, it wasn't nearly as bad as the worst one.)
Again, he can negotiate any way he pleases. Just don't pretend and market yourself as some great friend to founders. He's decidedly not.
Those who know avoid Khosla.
For all you new founders, tread lightly.
I think it depends on the entrepreneur on how much involved and close you want to be with your VC. Some of their operating partners - Keith Rabois, Ben Ling, Mark Jung, Flo (recruiting), Mojgan (PR), etc. are big resources to leverage on. I'm not trying to evangelize the firm in any way here but just putting it across that there are pros & cons in every VC firm and it boils down to what the entrepreneur actually wants. I have personally met entrepreneurs who just want a high valuation, that's it. The need varies.
Every entrepreneur's goal is to make his/her company successful and if the odds are high in getting a particular investor on board, then do it.
Btw, I think there are a lot of YC companies after our batch which raised money from Khosla ventures - instantcab, instacart are the ones on top of my mind.