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by nostrademons 2663 days ago
The model for YC startups is that most need to raise outside capital after YC. Part of their value proposition is being able to create a market of follow-on investors so their startups don't get totally shafted in those deals. That requires being in areas where there are enough investors to create a liquid market in fundraising rounds after YC.

China is one such area, and places like NYC or Boston could also work (YC used to be in Boston before PG & JL had kids). Those don't help much with the cost-of-living issue, though.
2 comments
my_username_is_ 2663 days ago
It doesn't help with cost of living, but it does help open the door to a new pool of founders that can't/don't want to live in the Bay Area for any number of reasons.

If there are enough quality founders and enough quality investors, it seems reasonable that YC could provide value to a new region by filtering for quality and facilitating new connections within the network

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kenneth 2663 days ago
It's fairly common for startups based outside of the bay to take a fundraising trip to SF when they're raising money. Even NYC-based startups do it.
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