zlacker

>>donsup+(OP)
This made me think... back in 2012, a startup called Kueski (now a very successful BNPL in Mexico) applied for YC (twice in 2 years). The founders were rejected, even though the business model was sound and the economics were pretty well laid out (I know the CEO and ge is a really meticulous person).

The reason YC gave for the rejection was that Mexico was an unknown market, and they felt lending in there was too risky for them.

Makes me wonder what was the decision logic to accept this Stablegains, against that background it doesn't make any sense.

Was YC aware of the ponzi nature of this thing and decided to dip in? It just makes no sense.

>>xtract+Yk
YC is just a VC firm. They avoid known risks and embrace unknown ones: that’s the whole point.

They don’t “understand” Mexico and are scared that their investment will get Pemex’d or something - and since that’s a known financial risk their backers would be like “wtf you doing?”

But “unknown” risks (even if actually quite easy to see) don’t have the same pushback from their investors. In fact, their investors may be demanding that they heavily invest in unknown risks.