The United States has imposed sanctions on two Chinese officials over their alleged involvement in human rights abuses against Uighur Muslims in Xinjiang. The US Treasury Department announced on Tuesday that it was imposing sanctions on Chen Quanguo, the Communist Party Secretary of the Xinjiang Uighur Autonomous Region, and Zhu Hailun, a former deputy party secretary who is now the Communist Party Secretary of the Xinjiang Political and Legal Affairs Commission. The sanctions were imposed under the Global Magnitsky Human Rights Accountability Act, which allows the US government to target individuals and entities involved in human rights abuses around the world. The US has accused the Chinese government of committing genocide against the Uighurs, a Muslim minority group in China's Xinjiang region. The Chinese government has denied the allegations and said that it is taking measures to combat extremism and terrorism in the region. The US has previously imposed sanctions on other Chinese officials over the treatment of the Uighurs, including Xinjiang's Communist Party Secretary Chen Quanguo and other officials. The US has also imposed sanctions on Chinese companies and officials over the crackdown on pro-democracy protests in Hong Kong.

The last day of Startup Investor School focused on the importance of building a strong team and how to attract and retain top talent. The speaker emphasized the importance of hiring people who are aligned with the company's mission and values, and who have the skills and experience necessary to contribute to the company's success. The speaker also discussed the importance of creating a positive company culture and fostering an environment where employees feel valued and supported. Additionally, the speaker discussed the role of diversity and inclusion in building a successful team, and the benefits that come from having a diverse group of perspectives and experiences. Overall, the session emphasized the importance of building a strong team in order to achieve long-term success as a startup.

- The US has imposed sanctions on two Chinese officials over alleged human rights abuses against Uighur Muslims in Xinjiang.
- The sanctions were imposed under the Global Magnitsky Human Rights Accountability Act.
- The Chinese government denies the allegations and claims to be combating extremism and terrorism in the region.
- The US has previously imposed sanctions on other Chinese officials over the treatment of Uighurs and the crackdown on pro-democracy protests in Hong Kong.
- The last day of Startup Investor School emphasized the importance of building a strong team and attracting and retaining top talent.
- Hiring people aligned with the company's mission and values, creating a positive company culture, and fostering diversity and inclusion were discussed as key factors for success.

- The speaker thanks everyone for attending the last day of Startup Investor School and apologizes for any parking issues.
- They mention that there will be wine, beer, and pizza after the session.
- The speaker briefly mentions taxes and advises attendees to research Qualified Small Business or Section 1202.
- They summarize the previous day's discussions on angel investing, deal flow, and portfolio construction.
- The speaker emphasizes the importance of being organized and paying attention to the investment process.

- The importance of budgets, check size, and sectors in startup investing is discussed.
- Personal brand is emphasized as a crucial factor for success.
- The idea of thinking like a boss and being professional is mentioned.
- The success of major companies built by software founders is highlighted.
- The 3 Bs (brilliant founders, big markets, and seemingly bad ideas) are presented as important factors to consider in startup investing.
- The speaker introduces the upcoming speakers at the startup investor school event.
- The history of early stage investing is discussed, including trends such as decreasing costs to start companies and invest, and an increasing availability of capital for startups.
- The emergence of venture capital firms in the 1940s and 1950s is mentioned, as well as the introduction of small business investment companies in the 1950s.
- The 1970s saw the founding of well-known venture capital firms and the emergence of angel investors.
- The 1980s marked a boom time for venture capital, with a significant increase in the number of funds.

- The 80s saw a boom in venture funds and the funding of companies like Cray, Apple, and Genentech.
- The number of tech IPOs fluctuated throughout the 80s, with a significant decrease in the late 80s due to market fluctuations and the stock market crash.
- In the 90s, there was a significant increase in capital availability for startups, leading to the rise of recognizable software companies like Netflix and Amazon.
- The 90s also saw a boom in venture capital, with a significant increase in AUM from $12 billion in 1996 to $120 billion in 2000.
- The rise of accelerators like Y Combinator and Techstars in the mid-2000s contributed to the decreasing cost of starting a company and the availability of capital.
- Convertible notes became popular in the mid-2000s, thanks to Y Combinator standardizing the terms, making it easier and faster for companies to raise money.
- The 2010s saw the emergence of platforms like AngelList and perks-based funding platforms like Indiegogo and Kickstarter, making it easier for startups to raise capital without selling equity.
- The Jobs Act in 2012 brought significant changes to the early-stage funding ecosystem, including exemptions for venture funds and the ability to publicly announce fundraising efforts.

- The early 2010s to present day have seen a boom in angel investing and fundraising for startups.
- AngelList and crowdfunding platforms like Kickstarter and Indiegogo have made it easier for more people to invest in startups.
- YC created the SAFE, a Simple Agreement for Future Equity, which led to a rise in convertible structures for fundraising.
- ICOs, or initial coin offerings, have allowed companies to raise money without meeting with investors, leading to a democratization of investing in early-stage startups.
- There is a trend towards everyone being an angel investor, with platforms like Republic allowing anyone to invest in securities online.
- The ICO industry may require new legislation to regulate fundraising.
- The current early-stage fundraising ecosystem includes normal seed fundraising through safes or convertible notes, as well as token fundraising through ICOs.
- Token fundraising is different from equity investing in terms of governance, valuation, investment process, future interactions, and exits.
- ICOs can be categorized into protocol tokens, application tokens, and securities tokens.
- Caution should be exercised when participating in ICOs.

- The speaker advises caution when investing in ICOs due to the newness and volatility of the market.
- Tokens are described as an incentive layer on top of a network, similar to Facebook being a social network.
- The example of Filecoin is used to explain how tokens can solve the problem of storing files in a decentralized and trustless manner.
- The speaker discusses the trends of increased liquidity, cheaper startup costs, and easier investment processes in the future.
- The speaker addresses questions about investing in both equity and coins, the importance of in-person meetings in evaluating ICOs, and the potential for high returns in the ICO market.

- Investing in Bitcoin has been one of the most successful angel investments in the past decade.
- Evaluating ICOs involves looking at technology, team backgrounds, and interacting with the teams through channels like Slack or Telegram.
- Following good investors in the ICO market can be beneficial due to faster liquidity.
- ICOs and token investing are a global phenomenon, with as much money being raised in Europe as in the United States.
- Lobbying efforts in the venture capital and crypto industries are increasing.
- Modifying the SAFE to account for future ICOs is complex and uncertain.
- Owning equity in a tokenized company may not hold much value if the network is well-built.
- Understanding the history of venture capital is important in predicting the future of the industry.
- The trend towards faster liquidity in the market has both pros and cons.

- Liquidity in the token market can lead to greater returns, but it can also be detrimental if early investors exit during a market downturn.
- Early stage investors provide support and stability for companies through their ups and downs.
- Tokens in general are more liquid, but early investors are being locked up for longer periods of time to ensure support for the company.
- The idealized form of an ICO is to raise enough money to launch the network and then have it become the world's, without the need for further fundraising.
- However, many token companies will fail due to running out of money, so there may be a need for scheduled or unscheduled later raises.
- ICOs are more similar to seed fundraising than IPOs, and stabilizing ICO prices may require different mechanisms.
- There are two types of ICOs: sales of securities (which are illiquid for a year) and direct ICOs (where tokens are immediately traded).
- Regulators may require proper treatment of tokens as securities, which would include lockups to protect against price fluctuations.

- The speaker thanks attendees for coming to the last day of Startup Investor School and mentions there will be wine, beer, and pizza after the session.
- They briefly discuss taxes and advise attendees to research Qualified Small Business or Section 1202.
- The previous day's discussions on angel investing, deal flow, and portfolio construction are summarized.
- The importance of organization, attention to the investment process, budgets, check size, sectors, personal brand, and professionalism in startup investing is emphasized.
- The success of major companies built by software founders is highlighted.
- The 3 Bs (brilliant founders, big markets, and seemingly bad ideas) are presented as important factors to consider in startup investing.
- The history of early stage investing is discussed, including the emergence of venture capital firms, angel investors, and the increase in availability of capital for startups.
- The rise of accelerators, convertible notes, crowdfunding platforms, and the Jobs Act are mentioned as contributing factors to the current early-stage fundraising ecosystem.
- The speaker advises caution when investing in ICOs due to their newness and volatility.
- Tokens are described as an incentive layer on top of a network and can solve specific problems.
- The trends of increased liquidity, cheaper startup costs, and easier investment processes in the future are discussed.
- The importance of evaluating ICOs based on technology, team backgrounds, and in-person meetings is emphasized.
- The potential for high returns in the ICO market and the success of investing in Bitcoin are mentioned.
- The pros and cons of increased liquidity in the token market are discussed.
- Early stage investors provide support and stability for companies.
- The idealized form of an ICO is to raise enough money to launch the network without the need for further fundraising, but many token companies may fail and require additional funding.
- Different mechanisms may be needed to stabilize ICO prices.
- There are two types of ICOs: sales of securities and direct ICOs, each with different trading restrictions.
- Regulators may require tokens to be treated as securities, including lockups to protect against price fluctuations.

- The video discusses the topic of eating habits or preferences.

- The speaker discusses the importance of being a good investor in startup investing.
- They highlight that reputation is crucial in the startup investing world, as it affects access to the best deals and prices.
- The speaker explains that being seen as helpful and beneficial to startups improves deal flow and increases opportunities.
- They mention four stages where investors can demonstrate their value to founders: sourcing deals, meeting and negotiating with founders, closing the deal, and maintaining an ongoing relationship with the company.

- Investors have a choice to either respect a founder's decision to not talk or pester and stalk them
- When meeting with a founder, respect their time and keep the meeting short
- If going out for coffee or a meal, the investor should pay
- Understand the terms of the investment and don't ask for excessive demands
- Negotiate in good faith and avoid groupthink
- Once an agreement is made, stick to it and don't break a handshake
- Follow up with the founder for necessary documents and wire the money as soon as possible
- Bring in other investors to form a syndicate if possible.

- When investing in a startup, offer to bring in other investors before investing yourself
- Don't try to take control or act like the CEO after investing
- Avoid bombarding the founder with unnecessary requests and distractions
- Shareholder commitment should be followed through with immediate action, like wiring money
- Never commit to investing money you don't have or make promises you can't fulfill
- Maintain a good ongoing relationship with the founder and offer help when needed
- Monthly updates from founders tend to lead to better outcomes
- Understand the difference between confidential and proprietary information
- Be honest and transparent with founders and expect the same in return
- Respect the boundaries of your influence and rights as a shareholder

- It is generally not recommended to go behind the founder's back and report them to the board, unless they are committing fraud.
- Pro-rata rights can be a point of contention between early stage and later stage investors and founders.
- Good investors can be both smart money and dumb money, as long as they are helpful and honest.
- Good investors are not necessarily the ones who write big checks or are famous.
- Seed stage companies usually do not have external board members, but it is advised to form a board after raising a significant amount of funding.
- Investor updates should include revenue, growth, burn, cash balance, challenges, and progress, and should be sent monthly.
- Reputation systems are not perfect, and there may be investors with good public reputations who have treated companies poorly.

- The speaker discusses the power asymmetry between founders and investors and how it can be difficult for founders to stand up to powerful investors even if they are being difficult.
- The speaker mentions that being a YC company gives them the ability to protect their companies from investors who mistreat them.
- The topic of losing pro rata rights is brought up and the speaker expresses their dislike for companies reducing or removing these rights from early investors.
- The speaker advises investors to fight for their rights but also be aware of their strength and when to stop fighting.
- Reputation is mentioned as an important factor and the speaker believes that mistreating companies will eventually be exposed due to the lack of information asymmetry.
- The speaker talks about the importance of planning and understanding the implications of investment terms.
- It is suggested that investors should ask for what they think they deserve, within reason, and understand their leverage.
- The conflict between a founder's reputation and the reputation of fellow investors is discussed, with suggestions on how to handle situations where recommendations may be uncomfortable.
- The importance of having honest discussions among founders and having a founding agreement is emphasized.
- The topic of providing a cap table to investors is mentioned, with the speaker stating that it is normal for investors to ask for one and for founders to provide it. The importance of having other agreements among founders is also highlighted.

The video discusses the importance of being a good investor in startup investing. It emphasizes the significance of reputation and being helpful to startups. The speaker provides advice on various stages of the investment process, such as sourcing deals, negotiating, and maintaining relationships. They also highlight the importance of respecting founders' time, understanding investment terms, and following through with commitments. The speaker mentions the power asymmetry between founders and investors and the role of reputation systems. They discuss the conflict between a founder's reputation and fellow investors' reputation and stress the importance of honest discussions and agreements among founders.

- Due diligence is important for early stage investors, but it usually doesn't impact investment decisions.
- The cap table and equity splits can be a red flag for companies.
- Asking for too much information during due diligence can indicate a bad early stage investor.
- Ron Conway, an experienced angel investor, started investing full time in 1994 and focused on internet software.
- He invested in founders based on their character and determination.
- Deal flow was easier to manage in the past when there were fewer internet companies being founded.
- The determination of the founder is an important factor in investment decisions.
- Ron has made both successful and unsuccessful investments.

- Failure is a normal part of angel investing, with a failure rate of around 40-60%.
- Some common mistakes in investing include investing in founders who turn out to be crooked or co-founders who don't get along.
- It is important for angel investors to get to know the whole team and the company's culture before making an investment.
- The biggest value angel investors can add to their portfolio companies is helping them build out their management team and providing introductions to important contacts.
- Angel investors should encourage founders to make decisions and avoid procrastination.
- Y Combinator is a successful accelerator due to its screening process and quality mentoring.
- Advice for new investors includes investing in a sector with domain expertise, spreading investments across multiple companies, and starting small before playing with the "house money".
- Ron Conway realized he was good at investing after Ask Jeeves, one of his investments, went public within two years.

- The speaker discusses the importance of wins in angel investing and how it allows for adding value to founders and being an advocate for them.
- Being good in angel investing means giving back to the community and being civically engaged.
- The speaker mentions the students in Parkland, Florida and their potential to make change in the country.
- Attendees are invited to demo days and advised to take notes and be decisive in their investments.
- The speaker suggests focusing on a specific sector, such as blockchain and crypto, to become an expert and help founders in that industry.
- The mechanics of investing, including the use of SAFEs, are discussed and the speaker acknowledges the need for tools to understand them better.
- The future of angel investing is believed to persist, although ICOs may become part of the decision-making process.

- The speaker emphasizes the importance of not being penny wise and pound foolish in investing.
- They urge everyone to work together to improve the ecosystem and maintain consistency, honesty, integrity, and transparency.
- The reputation of venture capitalists has suffered in the past due to bad behavior, but it no longer benefits anyone.
- The speaker suggests that transparency should be maintained even when using Convertible as a way to raise early stage capital.
- They propose a form that can be sent to request information about conversion prices.
- Feedback on the course is welcomed to make future improvements.
- The speaker expresses gratitude to the speakers and the team who organized the course.
- Demo day invites and other matters will be taken care of next week.

- Due diligence is important for early stage investors, but it does not heavily influence investment decisions.
- The cap table and equity splits can be a warning sign for companies.
- Asking for excessive information during due diligence can indicate a bad early stage investor.
- Ron Conway, an experienced angel investor, started investing full time in 1994 and focused on internet software.
- He invested in founders based on their character and determination.
- Deal flow was easier to manage in the past when there were fewer internet companies being founded.
- The determination of the founder is an important factor in investment decisions.
- Ron has experienced both successful and unsuccessful investments.
- Failure is common in angel investing, with a failure rate of around 40-60%.
- Common mistakes include investing in dishonest founders or co-founders who do not get along.
- It is important for angel investors to understand the entire team and company culture before investing.
- Angel investors can add value by helping build management teams and providing important contacts.
- Angel investors should encourage decisive decision-making and avoid procrastination.
- Y Combinator is a successful accelerator due to its screening process and mentoring.
- Advice for new investors includes investing in sectors with domain expertise, diversifying investments, and starting small.
- Ron Conway realized his investing ability after one of his investments, Ask Jeeves, went public quickly.
- Wins in angel investing allow for added value to founders and being their advocate.
- Good angel investing involves giving back to the community and being civically engaged.
- Attendees should take notes and make decisive investments at demo days.
- Focusing on a specific sector can make an investor an expert and help founders in that industry.
- The mechanics of investing, including the use of SAFEs, are discussed.
- The future of angel investing is expected to continue, potentially incorporating ICOs.
- It is important not to be overly cautious in investing.
- The speaker emphasizes maintaining consistency, honesty, integrity, and transparency in the ecosystem.
- Transparency should be maintained when using Convertible as a way to raise early stage capital.
- A form is proposed for requesting information about conversion prices.
- Feedback on the course is welcomed for future improvements.
- Gratitude is expressed to the speakers and course organizers.
- Matters regarding demo day invites and other issues will be addressed next week.

Startup Investor School is a free, 4-day course designed to educate early stage investors interested in investing in startups. We'll cover the fundamentals of investing, from investing instruments to legal and accounting basics to evaluating startups and managing deal flow. Our hope is that more people, from a wide range of backgrounds will consider investing in startups and that those who do will be better at it.

The course will run from March 5th, 2018 through March 8th, 2018. The course will be offered live online and in-person in Mountain View. All of the course content, including the curriculum, lectures and other resources will be made available to the public once the course ends.

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See all Y Combinator transcripts on Youtube

Startup Investor School Day 4 Live Stream