[jonathanjaeger]

True. If notable founders are willing to do Y-Combinator even though they could secure financing elsewhere without giving up a percentage, then there are many cases in which YC should accept (HipMunk, for example). That also speaks volumes of YC, if established entrepreneurs will come back to YC for a second time.

[alexis]

When people ask why they should do YC, I always come back to this example: if Steve (of reddit and now hipmunk) took Y Combinator funding -- with his wealth, connections, and experience -- why wouldn't you?