Tools

Search

Explore

Videos Channels Figures

Atmrix

About

Tools

Search

Explore

Videos Channels Figures

Atmrix

About

YC

Y Combinator Cast

01/27/22

@ Y Combinator

Screwing up with investors' money can have permanent consequences, including a negative public record that can follow a founder for life.

Video

YC

Simple Products That Became Big Companies – Dalton Caldwell and Michael Seibel

@ Y Combinator

Simple Products That Became Big Companies – Dalton Caldwell and Michael Seibel

01/27/22

Related Takeaways

YC

Y Combinator Cast

01/27/22

@ Y Combinator

Taking money from investors comes with accountability; if a startup fails to deliver, it can lead to lasting damage to the founder's reputation.

KN

Kirsty Nathoo

04/28/17

@ Y Combinator

Founders must use investor funds responsibly to build the company, as misusing these funds can lead to severe consequences, including losing investor trust and support.

MA

Marc Andreessen

06/11/25

@ Uncapped with Jack Altman

The emotional stakes are high for founders when their investors back competitors, as it can undermine their credibility and the trust of their team.

EG

Elad Gil

10/18/18

@ Y Combinator

Investors should be diligent in choosing whom to work with, as some well-known investors can be problematic and may not have the founders' best interests at heart.

SA

Sam Altman

03/18/17

@ Y Combinator

If you don't establish vesting for co-founders, a fallout can lead to dead weight on your equity table, making it hard to attract investors.

YC

Y Combinator Cast

02/13/25

@ Y Combinator

Many startups fail because they don't communicate effectively with their investors, leading to a lack of awareness about their financial status and spending mistakes.

MS

Michael Seibel

05/07/22

@ Y Combinator

Investors often have different incentives than founders, which can lead to misalignment in priorities.

RD

Ray Dalio

02/07/25

@ Peter H. Diamandis

Investing in character and reputation is vital; a company can fail, but maintaining integrity is crucial for future opportunities.

MA

Marc Andreessen

06/11/25

@ Uncapped with Jack Altman

The emotional impact of conflicts of interest in venture capital is significant; founders feel betrayed if their investors back direct competitors, which can undermine trust and morale.