>Each startup that goes through the three-month program now receives$120,000 in cash — $20,000 from Y Combinator, plus $100,000 from the outside investors – in exchange for 7% equity in their company.
$120k for 7% in a company!? Is that really a favorable term to startups? There's no way I would ever, EVER sell 7% of my company for a such a small sum. Who would sell out their passion for such a pittance?
It's very possible I'm missing something here, because my impression is that YC truly tries to act as a partner with founders. I just can't see giving a go at a startup - with all that entails - for an idea I believe is worth only $1.7M (even at the nascent stage).
$120k for 7% in a company!? Is that really a favorable term to startups? There's no way I would ever, EVER sell 7% of my company for a such a small sum. Who would sell out their passion for such a pittance?
It's very possible I'm missing something here, because my impression is that YC truly tries to act as a partner with founders. I just can't see giving a go at a startup - with all that entails - for an idea I believe is worth only $1.7M (even at the nascent stage).