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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.

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

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

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.

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.

SA

Sam Altman

05/02/17

@ Y Combinator

When a startup is failing, it's important to communicate openly with investors and ensure that employees are not left in the dark.

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.

PB

Paul Buchheit

03/07/18

@ Y Combinator

Investors should be cautious of founders who have easy backup plans; true commitment is essential for startup success.

EG

Elad Gil

10/18/18

@ Y Combinator

It's important for investors to challenge founders on their decisions, as this can lead to better outcomes and improvements in the startup's direction.

TJ

Todd Jackson

04/11/24

@ Lenny's Podcast

It's acceptable for founders to return money to investors if they haven't found success after several years.

YC

Y Combinator Cast

03/07/18

@ Y Combinator

If a startup fails and goes through dissolution, SAFE investors are next in line to be repaid after creditors, but often receive only a fraction of their investment back, if anything.