$150K to All YC Startups!
Yuri Milner (of DST, a large venture capitol firm in Russia) together with Ron Conway’s firm, SV Angel in Silicon Valley, have teamed up to offer ALL of the current crop of Y Combinator startups $150,000 each in convertible debt at very friendly terms. That’s friendly to the founders, not overly weighted in favor of the investors (although when it converts it essentially joins the series A). This is a big deal for founders of the 43 new startups enrolled. Milner and Conway are simply using Y Combinator’s vetting process to qualify the investment.
On one hand, this is very impressive and disruptive (it changes expectations of founders with regard to terms looking forward), yet on the other hand it’s not such a scary bet in that it’s a diversified play. It’ll be fun to watch.
The Milner/SV Angel team (called Start Fund) has said that they will do the same for the next Y Combinator group as well. Congrats to Paul Graham and all of the founders at YC. Here’s a post on TechCrunch that describes the deal.
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