[dasil003]

Yeah but this is such a specific goal for an early stage startup. It's true YC might not be into this, but on the same token they invest more in people than ideas. So if a company evolves into this, will YC insist on an exit strategy, or would they accept a dividend or some other arrangement? Somehow I don't see PG et al bringing down the VC-style hammer down over a $20k investment.

[SwellJoe]

YC doesn't insist on anything, beyond the initial terms you agree to when you accept YC funding. Which is why there have been a huge variety of company endings (from quietly slinking off back to college, to selling to Google, to returning remaining investor money and shutting down, to turning into a profitable growth company with no short-term exit plans, etc.).

Anyway, the terms they offer don't give them any way to demand anything. They are a common shareholder in the company with 2%-10% of the shares and no seats on the board. They can't steer the boat, they're merely passengers. So, it makes sense for them to choose companies that the most obvious outcome is one that will be profitable for them.