[jacquesm]

That's a great question. One interesting bit on the job application page:

> We offer standard startup benefits, including equity in YC. As a member of YC, you'll also have opportunities to get to know a lot of the best people in the startup world.

But no mention of a salary. In this particular case I'll make an exception to the rule that you should value your stock at $0.

[kjksf]

Actually, it's rather clear that Y Combinator has no plans for an exit event.

To quote Paul Graham himself (https://news.ycombinator.com/item?id=13784):

"Ordinarily a startup should be a C corp. It's cheaper to be an LLC, but if you plan to succeed, you may as well do things right from the start.

With an LLC profits don't get taxed twice like in a regular corporation. So it makes sense to be an LLC if you expect to have substantial profits, but don't expect to grant options, sell shares, or get bought. Consulting firms and law partnerships are often LLCs. YC is an LLC."

So the shares in YC are worth $0.

[jacquesm]

The idea that shares are worth $0 because there are no plans for an exit is ridiculous.

[koolba]

If there's no dividends or liquidation ability then why would they be valued anything but zero?

[jacquesm]

The valuation of a company is a reflection of the value of the underlying assets. In the case of YC that is the sum of the value of all the companies YC holds stock in plus intangibles such as the value of the YC brand.

[tedmiston]

You could liquidate the shares by leaving the company.

[zodiac]

But shares in law partnerships aren't worthless. Presumably YC pays its profits (when its portfolio companies have exit events) out to shareholders, so its shares are worth the future value of those profits.

[Judgmentality]

Unless the YC shares are actually shares in all their companies, including DropBox and AirBnB which will inevitably IPO at some point.

[bobosha]

> Consulting firms and law partnerships are often LLCs

LLPs perhaps?

[koolba]

Unless you're working for a public company and the shares have no strings or vesting schedule attached, the "value stock at $0" rule applies.

[sidlls]

Why value it at other than $0? It's a private company and we have no idea what encumbrances there are on the shares.

Hell, I work for a publicly traded company and have an "ok" RSU grant for which I value the unvested shares at $0.

[sjg007]

Equity in YC seems like quite reasonable compensation..