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?

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wmf 10 hours ago | parent | next [-]

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

Also X=Y for almost all startups.

	▲	fakedang 7 hours ago \| parent [-]
		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.

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blitzar 4 hours ago | parent | prev [-]

Is there no treasury desk at YC that takes care of this for everyone?!

Seems sub optimal to drop millions into a founders bank account for couple of years runway.