Why This Investor Refuses to Back Post-YC Companies
dbasch · x · 2026-08-13
An investor explains why they avoid funding companies graduating from Y Combinator. They argue that simply getting into YC provides founders with such strong brand validation that they lose the hunger and motivation typical of early-stage entrepreneurs.
The investor points out that these founders face zero downside risk, while YC's model relies entirely on the tiny head of the power law distribution. For outside investors, the odds of backing one of those rare breakout successes are simply too low to justify the investment.
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