Startup accelerator Y Combinator today disclosed a revamp of the Start Fund that lowers the amount of funding but adds “office hours” – more face time for discussions with the esteemed investors.
Companies chosen for the YC VC program will get backed by $20,000 each from Yuri Milner, Andreessen Horowitz, General Catalyst and Maverick Capital. This is down from the previous $150,000 in startup funding, but as before it will be offered as convertible notes with no discount and no valuation cap.
Y Combinator said the lowered investment amount would enable startups to “continue working on ideas that still look like ugly ducklings on Demo Day” while striking a balance between being more than what a successful startup needed and sometimes causing “messy disputes in the unsuccessful ones.”
Y Combinator – The YC VC Program
Entrepreneur, via CNBC – How Accelerators Help Startups Get Funding
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