[alexsolo]

The poster is assuming that once a YC startup is funded with a convertible note with no cap and no discount, that all other notes in the round will be at similar terms (and thus small angels won't be able to afford to participate in the deal). Maybe he doesn't realize that you can raise an angel round with different terms for different investors.

Personally, I don't think many YC companies in the batch will be able to raise an entire round with no cap, no discount. However, the $150K investment from SV Angel/Yuri will help companies negotiate better deal terms than they would have otherwise obtained.