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Understanding Investor Terms & Incentives

Y Combinator Startup Podcast

Do You Think Investors Are Incentivized to Rake More Money or Less Money?

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A lot of YC companies hear this line, and what it usually means is no. But if you somehow find a great lead investor and you come back to us, we're like, wow, they're really interested. They want to invest. We have offers when in fact, they just did this ninja move where they said, no, but that's that how you interpreted it. Isn't that wild? It's almost as if they have to do this, because this is their job. And all you're trying to do is raise money and get back to work. Of course, they're going to tie you into knots.

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