Gearing up for Disrupt, TechCrunch didn’t cover the “story”. Maybe we should have? I personally didn’t cover it because it seemed like there was no “there” there. The beef is best summed up by what Arrington writes here, “It is absolutely fine for a venture firm to offer whatever they want to a startup, and it’s absolutely fine for the startup to not accept that offer and move on.”
Arrington’s post, deliciously titled “Turning The Drama Down On Y Combinator V. Google Ventures” does a great job of adding context and nuance to press spin. Also, I never thought I’d see the day where the phrase “Turning The Drama Down” would make it into an Arrington headline.
Y Combinator is a venture fund which focuses on seed investments to startup companies. It offers financing as well as business consulting along with other opportunities to 2-4 person companies looking to take an idea to a product. Y Combinator looks for companies with “good” ideas over companies with experience and a business model. The company made its first investments in Summer 2005. Y Combinator selects companies to finance and consult with twice a year. They are located in...