That alone speaks volumes.
YC on the other hand was clearly informed that there was an individual who was considered a founder at some point in time. Despite knowledge of this risk, they invested and they facilitated follow-on financing. Now there's a big, dumb, expensive problem. YC dropped the ball, big-time.
The fact that Sam Altman is turning this into a public spectacle is further evidence that he knows YC fucked up badly, and probably doesn't have a legal case. The only reason to write what he wrote is if you're out of actual ammo.
This is really astute. In my experience, more often than not, when someone becomes angry at someone else, deep down they are really angry at themselves for letting something happen.
Between this incident and pg's "startups must be allowed to break the law whenever they want or else civilization might collapse" essay a few months ago, it's getting hard to take anything the higher-ups at YC say seriously.
So yes, the fact that this situation has become known at this terribly late stage reflects badly on all the investors in previous rounds.
This. That post was a huge red flag and after reading the claim it's very clear why he posted it.
But if there's any anger from screwed employees, it should be directed at the criminals who did the bullshit crime instead of the detectives who failed to identify the crime sooner, no?
And yes, in many cases when detectives or investigators in law enforcement are lazy with their work and miss something obvious, they often pay for it with their jobs.
Move fast, break things.
I bet this is one thing that will be fixed for all future applications.
It's also pretty scary that YC are willing to railroad a co-founder in favour of a SV insider.
If Jeremy never said a word about it since it would never come up. If I owned 50% of a company and it did a financing- I'd certainly inquire about my shares. Sounds like he never even did that.
Kyle probably feels like shit I am sure- it's a sickening case to read but to be honest I could see it going down exactly like that.