[biot]

  > We took our $400 travel reimbursement check from YC and
  > used that as seed capital for Grouper

I once returned a book to Amazon. If I used that money to fund a startup, it'd be rather disingenuous to call that Amazon-funded. Makes for a good headline though.

That aside, it sounds like a fantastic idea.

[metellus]

  > Co-founders Jerry Guo and Michael Waxman like to joke
  > that Grouper is a Y Combinator-funded startup.

They're not actually claiming to be funded by Y Combinator. Betabeat's headline didn't mention YC either.

[biot]

The HN title used to be: "YC-Funded Despite Rejection". It has since been updated to match the Betabeat headline.

[bryanlarsen]

There's a good chance that it cost them less than $400 to travel to YC, so there might be a tiny kernel of truth to the statement.