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Ask YC: When Y Combinator receives equity, when does it start diluting?
5 points by phil_KartMe on March 26, 2011 | hide | past | favorite | 3 comments
We've been offered a term sheet from a startup accelerator.

I think the terms state that their position will continue to adjust, and not be diluted, until just AFTER we raise a round greater than $250K.

Is this typical of accelerators? For example, does Y-Combinator continue to hold its full 2-10% investment just after a $1M round is raised?



YC takes common stock. They suffer dilution the same as the founders.


Thanks. Has this been true every year?


Yes.




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