[ycaspirant]

Upon getting accepted to YC, your company is promised $120K for 7%. Does this imply that if your company is accepted to YC, then it is worth $1.7M (because 7% of $1.7M is $120K)? Or is this not the right way to look at it? Why / why not?

[jlevy]

There are two chunks (as Sam mentions in his post) -- one chunk is for common stock and the other is in the form of a Safe that converts to Preferred stock.