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General Catalyst Joins Start Fund

6 pointsby csmajorfivealmost 13 years ago

1 comment

tomblomfieldalmost 13 years ago
As more and more VCs split the $150k, the value of the early access to deal-flow decreases. Initially, it made sense for an aggressive VC to invest $3m (60 companies * 50k) per YC-batch to get an option into the hottest seed &#38; series-A rounds in Silicon Valley.<p>But as this continues, it's looking more and more like a tax on seed round participation. Pay $x, or you'll be left out. Not that (YC) startups are complaining... they're more than happy to get the $150k on incredible terms.