Hacker News new | past | comments | ask | show | jobs | submit login

Under the current model, that is correct.

That’s like paying a UBI of $300 a month vs paying a whole department doing means testing for $100/month and then paying $300 a month of welfare to those who qualify.

May as well do something more automated and send the money. Like what Tyler is doing here — collecting info over time. Make the entrepreneur spend most of the time providung the due diligence in the format you want. They have the time not the money — and it is reusable for other investors too.

It should be a portal. Like the “Prizes, not Patents” debate. Same thing.




Another thought I had: they don't want to help you succeed in small increments because then you're 1) not likely to need their help any longer (they don't have you on a metaphorical leash), and 2) the more successful you are the more leverage you have in negotiating and could find other suitors to fund you at better rates.


Well, I think there are different kinds of VCs. And anyway, as usual there is a way to address this... they can just get options (but not obligations) to have preferential rights in follow-on stuff, such as right of first refusal.




Consider applying for YC's Spring batch! Applications are open till Feb 11.

Guidelines | FAQ | Lists | API | Security | Legal | Apply to YC | Contact

Search: