Hacker News new | ask | show | jobs
by amirhirsch 2817 days ago
Nice to see the offer getting better! I wonder about moral hazard in early stage funding. What if YC were to offer rent and salary for founders for 12 months? This would similarly change the dynamics around founders worrying about money while avoiding some of the temptation to over-spend and generally waste funding before building a product.
1 comments

Seems like the founder should be the one who figures out how to best spend the money no?
Someone should do a study to see if the lottery effect--where winning the lottery leaves you worse off because you don't know how to handle that much money--is at work with VC funding.
I would argue that founders generally figure out how to best spend investment during YC. At the beginning of the program there is enormous pressure to move fast and leverage the YC investment to show progress by demo day. This leads to wasteful spending and probably causes the majority of the financial stress you're trying to offset with an additional $30K.
Yeah fair, but I think at minimum VCs should start throwing in a linkedin recruiter subscription because man, that thing is just annoying to pay for. :D