zlacker

>>shscs9+(OP)
This is intersting.

Occasionally in YC founder circles a new founder will raise a bunch of money and then ask something like "What's the best way to invest all the money our company just raised?"

The responses are always along the lines of "Your startup is already risky. Don't innovate in areas of your business where the status quo is known to work. Innovate your product + technology, don't be innovative with your company's finances, HR, etc"

That advice always stuck with me. It just makes a lot of sense to do things in the most boring way possible, except where it matters (your competitive advantage <-- that's where you innovate, that's where you set yourself apart)

Running a startup is distracting enough. Doing things non-standard just adds to the list of distractions that you don't need as a founder.

>>cj+ul
It does seem ironic that a startup would immediately pivot to devoting some of its precious time and attention to becoming a hedge fund just as they've got the funding for their 'startup idea'. On the other hand, any big whack of cash should have an optimisation plan, lest it be wasted. Does YC provide templates?

Oversimplifying:

X = full amount of raised capital

Y = expected spend over 12 months

Z = $ value of percentage contingency for 12 months

Y+Z goes into use-it-however-and-whenever-you-want account (likely low to no interest)

X - (Y+Z) goes into a 12 month higher interest account, ideally staying untouched until maturity (stake the stablecoins in this context)

I'm skeptical of crpyto holding companies though, explicitly because of the lack of regulation. The likes of BlockFi, Celsius, and FTX gives me the cold sweats. Regulation in the US is notoriously lacking even in well established finance and banking, never mind the crypto 'industry' which was always high-percentage grifters, and now the Epstein files has added 'morally corrupt' tags to more of them.

Recipe for sleepless nights, which is already a problem for a startup founders isn't it?

>>BLKNSL+zH1
Just a money market account or something (e.g. https://mercury.com/treasury ).

Also X=Y for almost all startups.

>>wmf+eJ1
The point is, treasury accounts are not designed to manage crypto. So that's another layer of money management that startups have to deal with, when they could simply ignore it using a treasury account.

But of course, YC being YC will fund another startup which will help other startups manage their stablecoin portfolios...

Also note that in most jurisdictions, you cannot pay employees with crypto, stable coins or not. Nor can you pay suppliers. Or AWS/GCP/Azure.

This is literally a textbook example of, in YC's words, a solution in search of a problem.