Sounds like PG's talk was a great way to fish around for someone to offer YC companies an offer like this. I wonder sometimes how much his "predictions" are aimed at bringing favorable conditions into being.
We weren't expecting anyone to make an offer like this. Even if we'd had this idea ourselves, which we didn't, we would never have believed anyone would actually be ballsy and decisive enough to do it.
Really? This was pretty easy to see from miles away. It's a simple investment strategy - YC does the weeding for them, they throw a bit of cash at each company and get a much better return. I've been wondering why people haven't been doing this for a while.
Even if it makes a lot of sense in hindsight, it's still a pretty radical departure from what's been done before in the funding game. It certainly wasn't obvious to everyone that it was coming.
These terms are a lot more entrepreneur-friendly than what's been the norm, and if they weren't so friendly, it wouldn't necessarily be a no-brainer to take it, and this wouldn't be such a big deal.
Okay. Well for the future then: When you see someone being successful at any trend, piggyback on them. The lets you piggyback their research and hard work, but participate in the upside. If Anna Wintour says leggings are in, they're in. If Warren Buffett starts buying up aerogel companies - get in! If PG anoints some dotcoms, drop some pocket change on them all.
NB: This is regardless of whether you agree with the trend or not. I think leggings are hideous, but I won't argue with Anna Wintour. This is purely business, personal feelings have no place here. If someone is throwing out information asymmetrically (They're talking, you're not) take it.
Understood. However reading this just made it click for me that PGs essays and talks about the future of angel investing have a stealth result of signalling to VCs how they should approach and deal with YC companies. Seems obvious in retrospect. It could certainly be unintended, but if I was a VC reading PGs thoughts on where the angel ecosystem is going, I'd take it as a definite signal to meet him on the hill he claims to be walking toward.
