"If I were motivated only by self-interest, I should want later stage investors to drop out. That would leave seed stage investors like YC as the only game in town."
But isn't the entire YC experience designed to get angels and VCs at demo day to make an investment in each company?
No, the main focus is on whatever the startup is building. Toward the end of each YC cycle we switch to talking about how to pitch to investors. But even there the way to be convincing is to be working on something genuinely great, and just tell the truth about it.
But isn't the entire YC experience designed to get angels and VCs at demo day to make an investment in each company?