DISQUS

VentureBeat: Y Combinator gets a $2M shot in the arm from Sequoia, angels

  • shonzilla · 8 months ago
    What an intresting turn of events... VCs get MLM.

    No really, Y Combinator really know their stuff and they're keeping it real. Now that this happened, I wonder why it didn't happen before. Maybe investing in YC is a lower-risk high-yield method that makes sense in the times of recession when sales are going south and VCs still have money to burn.

    Cheers!
    Shonzilla
  • elliottdahan · 8 months ago
    It appears that the Y Combinator model leaves one very large gap in the Seed Growth process.

    2 or 3 founders with $15-$20K cannot get to a "traction" stage (all gneralizations are false - including this one:)

    Y Combinator can do sourcing and screening, but I don't know how they can provide the personal oversight and hand-holding needed to take a Seed company to a stage where the traditional VC will invest in a competitive and responsible way.

    Y Combinator provides a nice service (although a geographically limited one) but I don't see where it gives the entrepreneur the time and oversight to level the Series A money hunt between the Entrepreneur and the VC.

    What is needed is a Public-Private For Profit dedicated effort to work with, support and compensate the Seed Infrastructure (Incubators, Economic Development Agencies, Tech Transfers). This infrastructure already exists and provides the efficient sourcing, screening and post-investment oversight needed to develop Series A worthy companies. What is needed is a dedicated effort that is not geographically constrained. What is needed is a thorough Virtual Incubation system that brings both Community and Collaboration to all elements of the total Investing community.

    Please review the powerpoint – The START Fund -
    http://www.slideshare.net/ElliottDahan/start-fu...

    I look forward to all comments.

    Thank you,

    Elliott Dahan
    Managing Partner
    The Growth Group
    Email elliott(a)thegrowthgroup.com
    URL http://www.thegrowthgroup.com
  • snickers trousers · 8 months ago
    thanks for keeping us posted

    kelly
  • ugg · 2 weeks ago
    It seems forums are formidable marketing tools and they are the best.