Jordan seems to think that rolling closes hurt the bottom 85% of YC's portfolio, while Garry says they 'never' do. I think it would be very helpful for entrepreneurs to hear you guys elaborate on these points. And the consequences of the high valuations afforded to YC companies, in general.

The traditional seed investor model is broken and unfair to founders because gutless investors don't know how to make decisions. Since they are uncertain, they want more data.

They get more data by committing to priced rounds where they invest $200K - $500K, but then ask the startup to go raise 2X that from others. Safety in numbers, but cowardly. If the startup can't, the round is dead and the startup is screwed.

Rolling closes kill this behavior. Epic win for founders.

Rolling closes don't cause problems. High valuations can. YC partners (Sam Altman especially) spend a lot of time telling founders not to optimize for high valuation. We will continue to try to do this better. Point taken on that.

rolling close is related to high valuation for a few reasons... 1) first commit in rolling close can come from unsophisticated/price incentive investor. that sets price even if it is not real market price (ESPECIALLY) when that early commit comes form startfund investor who doesn't negotiate deal and just picks it as a double down, 2) rolling close when founder tries to raise price during the role alienates relationships and is short sighted

i actually feel like we've sort of finished this debate on twitter...branch for next time...