You're assuming that all startup founders come from the poor-recent-college-grad pool.

I'm working on an idea (applied to this round of YC but didn't make the cut), and the primary thing I need/want from YC is the mentoring and connections. Funding-wise, the $15K or so they'd invest wouldn't shift the needle of my personal finances one bit. I saw this post and briefly considered the idea of bidding, and then flying out from Boston for lunch if I won.

I am not saying this to brag about the fact that I don't necessarily need $15K. I am saying it because it is important to recognize that not every startup founder is in the same or age income bracket.

You are also confusing or blurring the line between YC and pg. Paul would likely be able to dispense valuable advice and offer insight and perspective on the current VC trends to a wide variety of startup founders, including those that are in the mid-30's with some experience and an idea. As I write this, it occurs to me that perhaps the people who CAN spend $500 on a lunch may be the types who would need or want some kind of advice on an entry path to the game since they can't follow the live cheap and eat ramen path.

Not really. If you have reasonable savings, but lots of doubts about any idea you can come up with, you fit in this category.

I do. I would probably donate up to $500 for this prize, but mr Graham would have to fly to Europe :-)

Up voted you because I agree that people who would really benefit this most likely don't have 500$ to spend.

However, you're implying the 20k$ startups get from YC represents all the value derived from being a YC startup. If I ever apply to YC, it will be for press coverage, the YC network and sound advice.

So, it's a bit of a long-running thing with me... that I continue to comment that YC = $20k + all the extra benefits.

The issue I have with YC is that I think the 'extra benefits' can be gained in other ways that doesn't require you to put a valuation on your company. I've been living here in SF for many years and I feel I have access to many of the 'extra benefits' YC gives through my own network (without having to take a specific route of funding)

The valuation for his advice may be at $500, but it's pretty arbitrarily assigned, I suspect, and more to illustrate the perceived worth than to actually drive the auction for it to $500 or more.

What if people aren't interested in the funding, but instead are interested in all the other intangible benefits that comes with being funded by PG&Co?

I think an entrepreneur who can't scrap up $500 for lunch if they believed it would help them succeed is unlikely to be much of a success. You must have some marketable skill and ability to make money with that skill....

what if he's already denied you?

This lunch isn't an investor meeting. It's a chance to have some food and chat about start-ups in general or general advice on your own. I'm fairly certain there is no implied chance of funding. After all, this is for charity.

That's not to say if if your idea is freaking amazing or you two click, he isn't ABLE to fund you. The chance is slim, but maybe just slightly more then meeting him on the street since he'll listen to what you have to say since your money is going to a good cause.

Either way, bid. The chance to meet him alone is worth $500 in my book.

some lawyers charge $1000/hr for consultation. an hour with pg is worth even more than that. $500 is bargain.