
YC Series A Program Investor Access - katm
https://blog.ycombinator.com/yc-series-a-program-investor-access/
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baccredited
Ugh - only deep pocketed individuals or investment funds can apply. For a
second thought they had opened it up FundersClub/Wefunder style where any
random person could take part. (Or at least accredited investor)

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akharris
The goal here is to reach investors that can lead series As. Doing that
requires a fair amount of capital given that:

a) the average A last year was $8m and b) the lead is expected to write a
check for the majority of the round.

I think that seed rounds are generally a better fit for the types of funds you
mentioned. It's possible that these funds will develop over time to be able to
lead As. I look forward to that happening and having them participate in YCA.

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soneca
Out of curiosity: on a $8m round, how much is expected for the lead to invest?

I would guess ~$2m, but you gave the impression that it would be more about
$5m.

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akharris
Leads will take as much of the round as they can. This is usually at least 51%
but often much more.

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xchaotic
Worth mentioning that given the current cheap money, a lot of the investment
is leveraged, on credit or timed. So you don't have to have 2m sitting idle in
a bank to lead a round.

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timavr
As far as I understand VCs(General Partners) don't hold investment money. They
just get paid fees and have a mandate from Limit Partners to invest, so when
they want to invest, they just call on LPs to transfer the money.

I imagine each VC fund has a multitude of LPs and they each manage cash based
on their own strategies. The key is that they have enough liquid assets to
meet the obligations in a timely manner.

Obviously, each fund is set up separately and might have a different
structure.

