[blunte]

This makes me wonder about Y Combinator. What this scooter company so new and innovative that it warranted investment? Isn't it one of dozens?

Or is it that there's must too much VC money without enough places to put it...?

More pessimistically, it's plausible that a lot of VC money gets spent on expenses that directly or indirectly benefit those VCs, so it's less about the viability of the startup and more about the money flow.

[alexpetralia]

It's possible that the goal of VC is _not necessarily_ to make the highest performing investments, but rather _convince_ prospective and existing LPs that the VC is making the highest performing investments. After all, the LPs pay the management fees. In order to do this, you need to sell a good story, and a good one to sell is one that is already established by social proof: "Look at these scooters taking over cities - don't you want to be part of it?"

[MarketingJason]

After some research, it looks like they were a part of Y Combinator's Winter 2019 graduating class so I believe that seed round is a part of the package you get when accepted.

[wp381640]

The CEO would have had the red carpet rolled out for him at YC because of his past even though Tile is a non-working capital sink