I <i>might</i> have applied for YC for Summer 2011, and my team <i>may</i> have been approached by another angel investor. Have any of you YC companies accepted investment before YC? It seems like I'd need to incorporate, hire lawyers, etc before YC (assuming I'd be accepted).<p>Any advice would be appreciated on the best way to proceed, assuming YC participation this summer.
Quite a few of the companies we've funded have already raised some money. It's not a problem if you raise money on a convertible note that YC's investment doesn't trigger. You'd certainly need to incorporate and get a lawyer. Whether it would be worth the cost and distraction depends on the amount being invested, and the terms.