
Ask HN: Does YC Invest “Common Stock” or “Preferred Stock”? - prakster
Just looking for a straight answer from anyone that knows for sure. I had always thought that YC purchased straight Common Stock for their 7% equity.<p>This page [http:&#x2F;&#x2F;www.ycombinator.com&#x2F;documents&#x2F;] implies that it&#x27;s Preferred Stock, whereas this old link [http:&#x2F;&#x2F;old.ycombinator.com&#x2F;documents&#x2F;YC_CSPA.docx] downloads a Common Stock agreement.
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clevy
Y Combinator purchases common stock - approximately 6%. Y Combinator has a
fund, called YCVC Fund I, that purchases a safe equal to 1% of the company (at
the time of issuance of the safe). The safe is typically convertible into
shares of the issuer's preferred stock (but could convert to common stock in a
merger, for example). So between the two YC entities, that's 6% in common
stock and 1% in a convertible security that will most likely turn into
preferred stock. Hope that helps clarify!

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prakster
Thanks for the clarification, Carolynn. How much of that $120k total
investment goes to purchasing the Common Stock?

