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Comment by callmevlad | Hacker News Reader

I thought the entire spirit behind applying without an idea was to invest in the team? If that's the case, and the original team is no longer there, wouldn't that team be disqualified?

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My points exactly. But there is no way to carry this out due to the current composition of the board. So at the very least, I believe that the ethical outcome is that they do not get the public acknowledgment of being a YC funded startup.

> In the March Y-Combinator demo day, there will be a team presenting with no member that was ever accepted to Y-Combinator

> Please note that I (with the support of Y-Combinator) asked for the dissolution of the company and return of all funds to our investors

If you have YC's support on this, then why will they be presenting at the March demo day?

I don't know whether they will for sure, or what the outcome will be. Only that YC strongly suggested, along with me and neutral parties, that the correct outcome would be the dissolution of the company and return of the funds to investors.

If YC strongly suggested that the company be dissolved, why would they invite them to participate in their demo day in March?

He writes in the very next sentence: “Unfortunately due to the composition of the board, this outcome has not taken place.”

That's the composition of the board of that (rogue?) company. But YC partners decide who presents at YC demo day and who doesn't, so it's not a decision for the board to make.

Hey I replied to you above. I am not 100% sure how this will play out wrt demo day. I was convinced in August by Alex and Rosanna to delay presenting until the next demo day, obviously because they knew something I didn't. This was offered by YC as an option for the first time, I believe due to the volume of companies in the batch.

As callmevlad said, demo day itself would be a slightly different situation than whether the money is returned. My guess is that since if the money is not returned, YC remain active (if reluctant) investors, and the $150k convertible note offer was made with the tacit understanding that demo day would happen, they will be allowed to participate.

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