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jiggy2011 450 days ago | link | parent

Yep, if there are less VCs and incubators willing to fund these companies then these companies will find it harder to get favourable terms, therefor there is less incentive to start these sorts of business.


chii 449 days ago | link

The problem with your logic is that if these ethically grey business models are profitable, you have to agree that the less morally demanding VC will indeed fund them (after all, profit is profit). Eventually, YC might still have their high ethical standards, but its the unscrupulous VC that makes the most dough. And the market selects for those who makes the most dough, not those who has the highest moral standing.

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jiggy2011 449 days ago | link

Well, YC does not control the entire market but they are certainly prominent in it and seem to have no lack of interest from investors and entrepreneurs.

I think what YC does probably does send stronger signals to the market through the startups they invest in than it does through pure dollars and cents.

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