All sophisticated markets rely on their being a protocol for “I want to do this deal, but I do not have authority to do the deal, but I forecast having the authority to do the deal, and you should move forward while understanding you have no formal recourse if it doesn’t happen.”
A maddening fact of these markets is that the protocol is not necessarily equally accessible to all market participants, and sometimes people fail to have a meeting of the minds on whether they’re engaging in it or not.
One of the brilliant innovations YC has is their handshake protocol, where they formalize “A handshake needs three elements: a valuation, a price, and a written commitment. If you will not offer that, you are not shaking hands. If shake and reneg, you shall incur our displeasure”
“Displeasure?”
You get entered into a computer system which probably has a name that is not The Big Book Of Bozos. YC companies are told to search it prior to selling equity in their companies.
It turns bozohood into a more iterated game than it was previously.
You get entered into a computer system which probably has a name that is not The Big Book Of Bozos. YC companies are told to search it prior to selling equity in their companies.
It turns bozohood into a more iterated game than it was previously.
