I wonder how many of those teams were single-founder projects that took on partners to apply. It is surely very rare for organic teams to experience this sort of drama in three months, no? Or is YC really just that stressful?
Point made - but do you really believe that halving the investment is going to change the level of drama involved? What is this - a shout out to Biggy's "mo money mo problems"?
Surely, we can respect the complexity of founder relationships, and yes, at times their tenuousness - and not trivialize them as matters that can be solved by making it easier for a VC to write-off the investment. It just feels like an aspirin for a different problem...
I assume he's talking about cases where the founders fall out well before the money has run out.
Previously, when there was little (money or IP) left, they'd just go their separate ways and start something new.
But with money still in the bank, founders may believe the company still has some value and a future, and will fight to assume control of it.