&gt; Instead of taking our equity up front, we’re going to be issuing a convertible security that only converts into shares when the company 1) goes IPO or 2) has a funding event or acquisition that values the company at $100M or higher. [...] it’s both founder friendly [...]<p>Is it (founder friendly)? It places YC (even more) firmly on the VC side of the classic VC&#x2F;founder conflict: VCs want founders to go big or go home, or as pg puts it &quot;VCs want to blow you up, in one sense of the phrase or the other.&quot; [1] Not that I don&#x27;t think YC can handle it, but still.<p>1. <a href="http:&#x2F;&#x2F;paulgraham.com&#x2F;aord.html" rel="nofollow">http:&#x2F;&#x2F;paulgraham.com&#x2F;aord.html</a>