> Many new investors really like to see the support of existing investors.
Right, because it's a signal that you think the business is worth this round of investment. Since you set this up as not being a useful signal, I think the investors will probably seek out signal from you behind the scenes.
Perhaps this is ok, since it won't be public and won't have the effect of a negative signal for the ones you don't give secret signal to.
EDIT to clarify: I believe new investors "like to see support" because it's a signal. If it can't be used as a signal (as will now be the case), they will seek signal anyway (in informal ways). I think they will do this by feeling out YC through back-channel communications and "kremlinology" type interpretations (even if YC tries really hard not to signal)
One argument would be that VC's are starting to feel like ALL YC investments are overhyped, and that YC is generating its own returns via demo day. Participating pro-Rata in all future rounds is a signal that YC continues to think its participants are a good investment even after demo day.
Right, because it's a signal that you think the business is worth this round of investment. Since you set this up as not being a useful signal, I think the investors will probably seek out signal from you behind the scenes.
Perhaps this is ok, since it won't be public and won't have the effect of a negative signal for the ones you don't give secret signal to.
EDIT to clarify: I believe new investors "like to see support" because it's a signal. If it can't be used as a signal (as will now be the case), they will seek signal anyway (in informal ways). I think they will do this by feeling out YC through back-channel communications and "kremlinology" type interpretations (even if YC tries really hard not to signal)