I sort-of agree with you and sort-of don't. I think there are situations where there isn't a power imbalance.
For example a lot of VC firms won't invest in two companies in the same space. This ensures that they themselves don't have to pick which of their two portfolio companies is a winner in terms of advice, contacts, hiring help, etc. This is "baked in" to VC in a very, very obvious, no-exceptions kind of way.
So let's suppose that Anna is a founder at BoxFlix. And let's suppose that Gary is a VC with ABCD Partners. ABCD led Netflix's series A round (and since it's fictional, Netflix hasn't gone public yet). Gary is at demo day and couldn't possibly ever even HOPE to invest in BoxFlix no matter how compelling Anna and her team and company are; he's already in the Netflix deal. Further let's suppose that Gary primarily deals on the clean energy side of things, meaning that most of his personal/professional (they're often intermixed) contacts won't do Anna any good.
So could Gary ask Anna out on a date without it being inappropriate?
Let's suppose for the sake of argument that he tells Anna all this prior to his asking her out on a date such that she knows Gary and ABCD Partners will never invest in her company. In this case I think it's at the very least in a grey area and quite possibly not inappropriate at all.
Now if Gary conveniently doesn't mention that he or his company could never invest with BoxFlix, it could be argued that he's trying to bait & switch on Anna and that's a real problem.
Or if Gary led the investment in Netflix and sits on the board and remains highly involved in the company that could be inappropriate too, at least for Gary. Anna might not mind, but ABCD Partners surely would.
Disclaimer: I made all this stuff up. I live in Houston, not California and I don't really know anyone out there. If this seems too much like anything that's happened in real life I apologize and I'm happy to change the made-up names of Anna, Gary or ABCD Partners. It's all just to illustrate a point, not to make anyone feel bad.
EDIT: I wrote all this out because the original line is "Y Combinator has a zero tolerance policy for inappropriate sexual or romantic behavior from investors toward founders."
In that I read the word "inappropriate". If it was a strictly zero-tolerance policy (like schools have for guns, fake or real or toy or hand-formed-into-a-gun) then the word "inappropriate" wouldn't need to be there. By definition ALL romantic/sexual advances would be inappropriate.
So that leads me to believe that the folks at YC think it is possible for a VC and a founder to interact in a way that might end up romantic and that it's OK.
The other possibility is that they mean "no VC we invite can ever ask a founder out" but worded it poorly. I'd like to think that the folks at YC are smarter than that so I discount it as a possibility but there's still some chance that's what happened.
For example a lot of VC firms won't invest in two companies in the same space. This ensures that they themselves don't have to pick which of their two portfolio companies is a winner in terms of advice, contacts, hiring help, etc. This is "baked in" to VC in a very, very obvious, no-exceptions kind of way.
So let's suppose that Anna is a founder at BoxFlix. And let's suppose that Gary is a VC with ABCD Partners. ABCD led Netflix's series A round (and since it's fictional, Netflix hasn't gone public yet). Gary is at demo day and couldn't possibly ever even HOPE to invest in BoxFlix no matter how compelling Anna and her team and company are; he's already in the Netflix deal. Further let's suppose that Gary primarily deals on the clean energy side of things, meaning that most of his personal/professional (they're often intermixed) contacts won't do Anna any good.
So could Gary ask Anna out on a date without it being inappropriate?
Let's suppose for the sake of argument that he tells Anna all this prior to his asking her out on a date such that she knows Gary and ABCD Partners will never invest in her company. In this case I think it's at the very least in a grey area and quite possibly not inappropriate at all.
Now if Gary conveniently doesn't mention that he or his company could never invest with BoxFlix, it could be argued that he's trying to bait & switch on Anna and that's a real problem.
Or if Gary led the investment in Netflix and sits on the board and remains highly involved in the company that could be inappropriate too, at least for Gary. Anna might not mind, but ABCD Partners surely would.
Disclaimer: I made all this stuff up. I live in Houston, not California and I don't really know anyone out there. If this seems too much like anything that's happened in real life I apologize and I'm happy to change the made-up names of Anna, Gary or ABCD Partners. It's all just to illustrate a point, not to make anyone feel bad.
EDIT: I wrote all this out because the original line is "Y Combinator has a zero tolerance policy for inappropriate sexual or romantic behavior from investors toward founders."
In that I read the word "inappropriate". If it was a strictly zero-tolerance policy (like schools have for guns, fake or real or toy or hand-formed-into-a-gun) then the word "inappropriate" wouldn't need to be there. By definition ALL romantic/sexual advances would be inappropriate.
So that leads me to believe that the folks at YC think it is possible for a VC and a founder to interact in a way that might end up romantic and that it's OK.
The other possibility is that they mean "no VC we invite can ever ask a founder out" but worded it poorly. I'd like to think that the folks at YC are smarter than that so I discount it as a possibility but there's still some chance that's what happened.