Right on. The YC experience is worth so much more than just $15k-25k. It's like giving some stock to part time consultants. Except the consultants are none other than PG, Jessica and Trevor, and they pay you $15-25k! Then you also get the seal of approval and doors instantly open. And you get to learn from others' mistakes and triumphs as you see first hand 20+ other startups thrive and die. Plus you get access to the YC alum network.<p>PLUS, there are virtually no costs of the YC process. You fill out an application: 1-2 hours. You interview: 10 minutes + travel time. You fill out some paperwork: 3-4 hours. Boom, you get a check and have a Delaware corporation. Maybe you don't get in and you're out a few hours of work.<p>Compare that to the fundraising process with anyone else. Of course, I'm preaching to the choir here. But I just wanted to add another data point.
"You could say that giving up 6% for $25k is a bad deal, that it values the business at less than $500k"<p>I'll take it further. This is a good deal without the mentoring, although I can't imagine anyone finding your startup valuable without you taking good mentoring. Who is the kook that thinks a startup with no finished product, no users, certainly no "customers", so clearly no proven biz model, is even worth $500k?<p>Does Sarah Lacy have any first hand experience at the helm of a start-up? Based on her opinion I can't imagine so. As a person that has been doing startups for 20+ years, I can say its a no-brainer to give up 6% for a little cash and proven leadership.
As the YC FAQ states: <i>"Half (maybe more) of the startups we fund don't need the money. ..."</i><p>I'd really like to be a part of YC someday soon–and I definitely wouldn't need the money. My problem is finding time to be away from my current company long enough to focus on and launch a new idea.<p>When I read that Sarah Lacy comment last night, I thought it was one of the more short-sighted comments I'd read on TC. Is that par for the course for her?
The usual reason that you don't want to give up too much equity is because you're selling control of the company -- not because you're worried about losing a small percentage of your exit. The difference between $10.7 and $10 million isn't all that worrisome.<p>I don't see much of a reason to worry about that in the YC case. I'm not worried about them trying to take over the board or block an exit or forcibly change a product strategy.
certainly the ycombinator clones are interesting and may even begin to make a difference. But, if the value proposition of ycombinator is essentially PGs talent, help, and networking, how much can the knockoffs really give you.<p>That being said, as with the author, it is even more clear to me ycombinator itself is the best deal out there