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Re:$250k of DigitalOcean credits for YC startups by kriro on Thursday February 04, 2016 @01:58AM (#11032460)
I'd look at it this way:

1) If you feel you're funding direct competitors...we're talking about startups. More of a validation of your base idea than a real edge for the competition. It's also not horrible to know your direct competition uses the same infrastructure.

2) Otherwise...this lets DO add more customers from the group of startups, which you're in, and thus gain more experience with their typical problems and needs which should benefit you (ever so slightly).

Re:$250k of DigitalOcean credits for YC startups by onion2k on Thursday February 04, 2016 @02:06AM (#11032476)
If you feel you're funding direct competitors...we're talking about startups. More of a validation of your base idea than a real edge for the competition.

There are startups and there are YC startups. If you've got in to YC you've probably already proven your idea and you're generating revenue - YC is about accelerating rather that actually starting after all. If you're directly competing with a YC company then this does put you at a disadvantage, especially if you're in a space where computational power is a big part of your burn.

Mind you, hasn't AWS given huge blocks of credits away to startups in lots of accelerators since forever? This isn't really a new problem for competitors.