Let me preface this by saying that this statement in no way reduces the level of effort
I will put into my own startup and that I haven't been accepted into YC yet.<p>I was thinking of the idea of investing in each others startup's. Basically exchanging 1/2-1 percent (total) equity with other startups you will meet, in exchange for cash/services or stock swap. I wonder if the will be kosher with PG et al. Thoughts?
The stock swap scenario is a hedge. It allows founders to potentially realize some upside even if their company does not succeed. I think this could be a useful tool to help founders effectively mitigate some of the risk they take on.<p>That said, there is the danger that allowing founders to hedge there risk in this fashion would make them less motivated to make their own company succeed.
First Round Capital does this with its portfolio companies, allowing founders of these companies to share equity with other First Round founders.<p><a href="http://redeye.firstround.com/2010/01/sharing-and-exchanging.html" rel="nofollow">http://redeye.firstround.com/2010/01/sharing-and-exchanging....</a>
This would be huge in helping startups leverage skills and assets from each other. Even people not chosen by y combinator could potentially still receive a majority of the rewards and help that those who are accepted receive. This could be a new step in startup funding/acceleration.<p>Ashley reddy is a fricken genius.<p>I would definitely participate in this endeavor. I'll be the first one to offer something. I'm a tax accountant by trade during the day that has worked at pwc and kpmg. I currently own my own firm. I'd be willing to help with tax services and corporate planning.<p>During the night I'm working on a nonprofit startup for edu. The app will help people discover occupations that suite their needs based on earnings, location, cost, time and interest.<p>I don't think a 1-2 percent share is going to make anyone forget about their own personal goals and projects. It's honestly more a gesture of good faith and earnesty toward each other's help.<p>This could also lead to a whole new genertion of mashups that could revolutionize something new.<p>Lol I sound like a hippy. But I'd be willing to even help gratis just to meet some cool people from hn with similar interests.
I think this is a great idea - exchanging money, I'm not so sure. If everyone's trying to get funding, not a lot of cash to go around.<p>If, however, you worked out a shared-talent pool, that has a lot of potential. For example, often times startups don't need operations or HR staff right away, it's done by the founders. However, when it comes time to use more talented staff, what if one startup employed the person, but the pool can share their talent for an equity exchange?
Seems like there are details to work out, but might be a good opportunity both for startups and for staff who would like to be in at the ground level, but there's not enough demand at any one company.
I don't get it. A venture capitalist invests in a spread of companies because he isn't 100% sure which companies will win.<p>However, a founder is 100% sure that his company will succeed. If he isn't, he is sure to fail.<p>So why would I do this? I'm going to win - I don't need a backup plan. (this is how I see it, that is)
Its a great idea. It might even boost the already good cooperation that I think exists amoung the start ups.<p>Somehow, the idea that having this cross equity holding is going to be damper on one's motivation to build their own start-ups seems moot. Who wouldn't want to make more money if their idea seems good enough?