Reality is VC is herd mentality which relies on deal flow to be successful. Winning firms see the best startups, invest first and the cycle continues.
YC is a devilishy clever way of front-running[1] VC deal flow. They give you a <i>peanuts</i> amount of money, a lot of abstract culture&#x2F;network spiel which does have some value (i.e.- &quot;it&#x27;s who you know, not what you know&quot;), and they get to see all the deal flow first. At the end of the day, its a way to step in front of angels and VC firms. Like any investor, they only care about the investment. It seems a bit culty too, but that&#x27;s the valley[2].<p>More entrepreneurs should follow the bootstrapping advice of Dr. Terman and shun &quot;joining established firms&quot;.[3]<p>[1] <a href="https:&#x2F;&#x2F;en.wikipedia.org&#x2F;wiki&#x2F;Front_running" rel="nofollow">https:&#x2F;&#x2F;en.wikipedia.org&#x2F;wiki&#x2F;Front_running</a>
[2] <a href="http:&#x2F;&#x2F;www.wired.com&#x2F;2014&#x2F;04&#x2F;mike-judge-silicon-valley&#x2F;" rel="nofollow">http:&#x2F;&#x2F;www.wired.com&#x2F;2014&#x2F;04&#x2F;mike-judge-silicon-valley&#x2F;</a>
[3] <a href="https:&#x2F;&#x2F;upload.wikimedia.org&#x2F;wikipedia&#x2F;commons&#x2F;9&#x2F;94&#x2F;HP_garage_nat&#x27;l_historic_landmark_plaque.JPG" rel="nofollow">https:&#x2F;&#x2F;upload.wikimedia.org&#x2F;wikipedia&#x2F;commons&#x2F;9&#x2F;94&#x2F;HP_garag...</a>