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by rl3
3979 days ago
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>On the plus side, they have an incentive to ensure that promising startups do raise follow-up funding (rather than go out of business), it avoids some of their misaligned incentives relative to the rest of the investment community, and they have an incentive to keep helping their investments later in life. YC already has incentive to do this; their post-dilution stake in wildly successful companies still shakes out as being far from trivial. That said, it would certainly be fair to say that these changes probably do serve to strengthen existing incentives. |
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