Meh YC backs a lot of scams masquerading as businesses. This period of easy money and wealth concentration has fostered much in the way of misallocation of capital. Y-Combinator exists to make its owners money. Their primary concern is bloody Benjamins, not morality and the public interest.
YC has funded scummy companies before. InstallMonetizer comes to mind.
In their defense, I don't think YC claims to not find scummy shit. To me it seems that they have a moral compass comparable most financial institutions, i.e. none.
By definition, a “YC Company” is given hundreds of thousands of dollars and direct hands on strategic advice on how to run the company. That’s the meaning of the concept.
The company in question has blatant securities fraud as their core business model.
QED
Here’s a logical construct in return. When people you like do unethical things they are still unethical.
What ethical standpoint is that? That's the devil which installs spyware on your machine.
So, they have a business plan, good for them. But it doesn't make them any less scammy, nor does it make it any less disappointing to see YC funding people with the same ethics as your average patent troll.
YC exists to gain a return on capital investment. I see no reason why a group of people making money from the labour of others would care about morals.
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