The way VCs raise their funds and get paid seems horribly broken. I think most of them hover between borderline fraud and out-right fraud.
YC should kill all the sub-par VCs by scaling up massively and taking their billions in funding away.
YC should kill all the sub-par VCs by scaling up massively and taking their billions in funding away.
We'd never compete with VCs, incidentally. It's a completely different world from ours. They invest on behalf of other people (or more often, institutions). So while they have huge resources at their command, they have to answer to their investors, and this makes them excessively conservative. We much prefer using our own money, even if it limits what we can do.
Q. Are you looking for investors? A. Not at the moment.
I always wondered why YC was reluctant to take outside investment. Now we know why :)