

Ask YC: What's the YC protocol for submitting to multiple VC? - donna

How is this handled when one is looking for seed funding.  Does one submitt to one funder at a time and wait or what?
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sama
no! multithread. you always want to create competition for your deal. it is
very likely some sources of funding will say no, and the way to get good terms
from the others is to have multiple offers. YC is slightly different, in that
the terms are set, but still.

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RyanGWU82
I can't speak to YC specifically, but one normally would want to contact many
investors in parallel. The chance of receiving funding from any one investor
is incredibly low. If you contact them serially, you'll spend a hopelessly
long amount of time raising money. Likewise, if multiple investors are
interested in your company, they may jointly invest, which is somewhat common.
Plus, you can use the competition to establish the fair market price of your
stock.

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pg
I don't understand what you mean by YC protocol. Are you asking what we advise
startups we've funded to do when approaching investors for further funding?

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donna
Yes.

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pg
Approach many in parallel.

