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by tptacek 3780 days ago
7% might not be worth it if you've sold a couple companies and are a mortal lock for funding for your next company, but otherwise, this is the weakest objection to YC. The value you get just from having the YC label more than offsets the 7%.

(I'm sensitive to this because it used to be my big objection to YC, because 7% is a large amount of equity to give up for the money they're giving you, maybe even today.)
1 comments
arasmussen 3779 days ago
> 7% is a large amount of equity to give up for the money they're giving you

The value you get out of YC isn't really the money.

7% is a lot.

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wantreprenr007 3779 days ago
It's at least 3.5x as good as the best advisor. Better to have 93% of something worth 10MM+ than 100% of 100k.
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arasmussen 3779 days ago
> Better to have 93% of something worth 10MM+ than 100% of 100k.

You're making an assumption that with YC your company would be worth $10m+ and without, $100k. That assumption isn't really valid to me.

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