Access and valuations. Although YC does much better than other incubators in terms of outcomes, the batch sizes are quite large these days and the best deals are oversubscribed before the batch even starts. There's a lot of money chasing deals. So unless you have a solid reputation, it's hard to get started.

Obviously, you can overcome that by just spending the time, building dealflow, etc, but it suggests that new angels won't get access to the 1% deals. One of my batchmates was Cruise Automation which has had a spectacular trajectory. I don't know for certain, but I suspect Kyle wouldn't have been willing to take $10k from me. :)

Totally agree. To that point, I was trying to do this on my own and it's nearly impossible. As a corollary, Pioneer Fund has something like 26 founders & staff + various software tools to review each batch.

And then, yes, if you think of $10k from the other side, as CEO I don't want 100 people in my cap table that I need to signatures from for every corporate action.

You both are right that you won't get into many of the "hot" deals, but I don't believe there's enough data to show those turns into the best returns.

I have also gotten into a hot deal or two as a nobody. I write to the ones I am interested as early as possible with what I like about what they're doing, what I think would be helpful advice, and how my experience may be relevant. I also write checks same day.

That said, its a numbers game, just like any form of sales.