startupethics

As a side note, the 50% dilution was not a normal dilution during funding round. No significant new money was invested into the company on that dilution.

I'd be willing to risk lawsuit, if there is an official channel in the incubator to report ethics violations. And a general practice by the incubator to keep such reports and investigations relatively confidential. I think this would make risk/reward ratio to be good enough for me.

I don't know, if there is value for incubators to spend resources on that mechanism (maybe wealthier in a long term, if nerds could keep their lunch money? as per http://www.paulgraham.com/wealth.html ).

If there is no such established mechanism, I don't think risk/reward of reporting ethics violations is good enough. Precisely because the most likely outcome is being sued into a small ball of carbon.

I think it is a good idea to have official public channel to report ethics violations of founders. My guess is that YC partners would try to uphold https://www.ycombinator.com/ethics/ And quietly weed out rogue founders from the network. But this is just a guess.

1) Yes. I still have connection with that former intern. Value of his contributions - my judgement and his following career is enough to make a clear call on that. 2) Unlawful practices are also ethics violations right? No, it should have been e-mailed + posted on the wall. No chance of missing it. 3) I don't care about $100,000.00. Not worth a lawsuit. And it is extremely easy to see 50% dilution and its effect. It's in the documents.

I'd rather avoid conflict and let YC deal with their founders / alumni. So what I'm asking, if there is an official public channel to report issues like this to YC?