Didn't Altman just say that they sometimes do value companies differently?
What was bad about the signaling problem with YCVC was that it probably often had nothing whatsoever to do with the value of the company, and was instead just an artifact of circumstance. But other investors might not be savvy enough (or just might not have the time to think through it) to understand that that was all that was happening.
> Didn't Altman just say that they sometimes do value companies differently?
It seems like they're planning to significantly decrease that variation. Almost all companies will give 7%, and a few exceptional cases might give less. This move eliminates all signaling risks (7% is now standard, so it's not a mark against companies, and any deviation is likely upwards).
What was bad about the signaling problem with YCVC was that it probably often had nothing whatsoever to do with the value of the company, and was instead just an artifact of circumstance. But other investors might not be savvy enough (or just might not have the time to think through it) to understand that that was all that was happening.