General Catalyst Joins Start Fund

As more and more VCs split the $150k, the value of the early access to deal-flow decreases. Initially, it made sense for an aggressive VC to invest $3m (60 companies * 50k) per YC-batch to get an option into the hottest seed & series-A rounds in Silicon Valley.

But as this continues, it's looking more and more like a tax on seed round participation. Pay $x, or you'll be left out. Not that (YC) startups are complaining... they're more than happy to get the $150k on incredible terms.