INSUBCONTINENT EXCLUSIVE:
This morning, Y Combinator is publishing a 70-page Series A guide based on its work with 190 YC companies over the last couple of years
need to put something so massive together
What are some of the misconceptions around how to land these financings?AH: I had this idea that Series A rounds were understood on the
[before doing this]; we advise against companies going out to market because of a false signal
Sometimes, an investor wants to give a team a term sheet and they misinterpret this interest and kick off the fundraising process before
diligence request by an investor
their customers, then the VC calls them, and if the customer is having a bad day or [the VC] reaches the wrong person, that bad reference
companies do better at raising A rounds, but we want to help as many founders as we possibly can
This guide is another step designed to solve that information asymmetry between what founders and investors know.If YC can help companies
[PitchBook recently estimated] that there is $100 billion in dry powder [waiting to be invested in startups], but that sounds way too low to
In 2007, 2008, I was at Bridgewater Associates, and we saw the amount of money sitting on the sidelines in sovereign wealth funds, and
various of these have trillions of dollars
And some are investing directly in startups.
