These three companies – Y Combinator (YC), Ingressive Capital and Microtraction – are venture capital firms, they invest in startups. The numbers at the right are their typical investment structures. Certainly, Microtraction could be seen as the least option; so, we can freeze it for this exercise.
Assume Ingressive is offering $300k for a 10% stake. Also, note that YC is the world’s most premier accelerator which has a peerless reputation of creating category-king startups which have gone to raise tons of money. Yet, Ingressive is offering good numbers here; it has its own reputation as a good picker; its strike rates are solid.
Now, between Ingressive ($300k for 10%) and YC as noted, which one would you go for as a founder or owner? Share your reasons.
(A Tekedia Mini-MBA Lab)
Update: Good People, if you can comment on this post, it would be appreciated. We are developing a Decision Making Matrix at the Tekedia Institute for a course which we are teaching on how to Pick The Best Investors. This course is really important for the Institute as many of our Members are always asking questions on this. So, we want to have something like a methodology to provide a direction. This post is part of my research; LinkedIn remains my lab.