Re:On Applying to Y Combinator
by jacquesm on Thursday October 01, 2009 @07:09AM
(#854698)
I'm of two minds about the amount and percentage.
On the one hand it's seed stage, the very large majority of seed investments turns out to be wasted money, so there is a premium to be expected.
On the other hand $20K means that the startup will be looking for money again in the very near future, and getting follow up investments is a very time consuming job.
Then there is the fact that YC makes a bunch of very invasive requirements of the 'founders', they have to basically give up their life and family for this chance to be a player. That's a decision everybody makes for themselves of course, but you have to balance what YC can give you (a one time shot at the jackpot) to what you've already got.
I think this is why YC skews to younger people, the price to pay for a chance like this is a lot smaller when you're younger.
Also, older people tend to be unimpressed by $20K, especially if it is for multiple founders.
On the one hand it's seed stage, the very large majority of seed investments turns out to be wasted money, so there is a premium to be expected.
On the other hand $20K means that the startup will be looking for money again in the very near future, and getting follow up investments is a very time consuming job.
Then there is the fact that YC makes a bunch of very invasive requirements of the 'founders', they have to basically give up their life and family for this chance to be a player. That's a decision everybody makes for themselves of course, but you have to balance what YC can give you (a one time shot at the jackpot) to what you've already got.
I think this is why YC skews to younger people, the price to pay for a chance like this is a lot smaller when you're younger.
Also, older people tend to be unimpressed by $20K, especially if it is for multiple founders.