Comment by lumost

1 year ago

A high-quality early stage team that self-selects out of follow-up rounds may be a decent outcome for some VCs. This means early liquidity in all of the "positive" events. If the founders were high quality, spinning an acquihire out can still recoup some of the loss.

The challenge would come where the founders are not serious, and instead are viewing YC as a stepping stone to a level up position in a big tech/large firm. While I'm sure everyone has this idea to some extent as a fallback, you need people to be committed to making their business work.