At Boost VC, we are the accelerator for Sci-Fi. We invest $500k into Sci-Fi founders, because $125k isn’t enough! Many investors and founders have asked me what I think about the deal change at YCombinator. If you don’t know, YC moved their standard investment deal from $125k for 7% to
This seems like a good move for both the entrepreneurs and YC. Rough numbers .... 125k for 7% is a $1.786m valuation. If you then go onto raise $2m on $8m pre ($10m post) YC would pick up a further 3.75%. The YC model works very well, The choice is to invest in more companies or take more of the companies they invest in. The latter seems easier.
Do you think this is a naturally occurring squeeze on both ends of venture? Great accelerators raising the bar early on and large brand platform investors coming in earlier and earlier.?
Adam: congrats on realizing 2 years ago that bumping up to $500K would be more meaningful for startups than just $100K... and I agree, even though the price of poker just went up, there's still room to run. But maybe you have to be a little more creative figuring out what race you choose to enter ;)