Essay


The Cost of Preemptive Deals

We looked at 120 US Series A rounds from our portfolio over the past 18 months to see whether or not preemptive offers were generally more or less dilutive than process driven rounds. On average, founders taking preemptive offers are taking ~1.4% more dilution for less money.

“Angels,” Angels, and VCs

I’ve recently noticed an uptick in the number of “angels” that aren’t actually angels. These investors are institutional funds (read, LP dollars), the details of which aren’t generally disclosed until the founder sees a strange entity name on the signature lines in the docs.

How Biotech Startup Funding Will Change in the Next 10 Years

I’ve noticed that raising money for a biotech or other life science company in 2019 looks a lot like raising money for a tech company 10 years ago. Since then, fundamental forces caused fundraising for tech companies to change dramatically. And I believe that they are going to change biotech fundraising very much the way they changed tech company fundraising.

How to Manage a Board

Anu Hariharan shares the collective wisdom of the YC community to help guide founders on best practices in managing a board––including running board meetings and overcoming board issues.

Don’t Over-Optimize Fundraising

Fundraising is never the deciding factor in the success of a company, founders should instead look to use a regret minimization function when fundraising. Essentially, they should get what they need, avoid doing stupid things, and move on.

A Guide to Preemptive Funding Offers

Unprepared founders can get trapped by the dynamics of a preemptive offer and forced into suboptimal outcomes. If you find yourself in a situation where you think you are getting preempted, here’s what to do.

On Shutting Down

Founders lack a coherent way to think about when to shut down. Founders do not always get to choose to shut down. However, most of the time, it is the founder’s choice. It’s a personal decision. It’s a hard and painful decision. It’s an emotional, fraught decision. However, shutting down doesn’t have to be a blind decision.

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