| ||Ask HN: Will Y Combinator taking Sequoia investment hurt the YC companies?|
38 points by bravura on Oct 22, 2009 | hide | past | web | favorite | 41 comments |
|Does taking YC money blended with Sequoia money lead to unfavorable terms down the line if raising VC?|
As you probably know, YC is taking money from Sequoia to help fund YC companies this term: http://ycombinator.com/party.html
Chris Dixon (http://www.businessinsider.com/the-problem-with-taking-seed-money-from-big-vcs-2009-10) and
Venture Hacks (http://venturehacks.com/articles/options-open) put forward the following argument:
Although Sequoia does not get right of first refusal, having a single VC participate in a company's seed funding can nonetheless hurt the company in the long run.
What do people think about this potential downside?
| Apply to YC