[maest]

This reasoning would be true only if YC was the only investor in town. In truth, the options actually are a superset of:

* Do not raise

* Join YC at a very low valuation and justify it with the nebulous value of the "YC network"

* Raise from any other investor at an appropriate valuation and benefit from the nebulous value of their network.

[IncRnd]

The options are a huge superset of those you listed. Some that you didn't list are bonds, loans, and grants, but there are so many many avenues.