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.
