Will Y Combinator taking Sequoia investment hurt the YC companies?
pg: Top tier firms like Sequoia already have a de facto right of first refusal on the entire startup market.  They already see every deal.  So if Sequoia passing on a deal deterred other funds from investing, they wouldn't be able to invest in anything.Which in turn is why Sequoia was willing to invest in us without imposing any conditions.  Because the top tier funds already see every deal, it's in their interest merely to increase the number of startups, just as, because Google has such a big percentage of the search market, it's in their interest merely to increase Internet usage.Sequoia does get an early look at all the startups, but this was not a condition of the deal.  They always have.  (All the speakers get an early look at the startups; it would be hard for them not to; and since winter 2006 the VC speaker has always been Greg McAdoo.)