Re:Ask HN: Is there a $15k penalty for not accepting YC's of...
by vikramkr on Friday July 12, 2019 @06:02PM
(#20424917)
From their perspective if they think you are far enough along for the core, you might be too good for the grant. I think the aim is to support those marginal companies that just need a bit of a push to become investment ready, not the companies that are already good enough to raise from YC.
1. Go through it, apply for core, don't get accepted don't get $15k
2. Go through it, apply for core, don't get accepted to core but get $15k
3. Go through it, apply for core, get accepted to core, enter core, don't get $15k (but get more money, with strings)
4. Go through it, apply for core, get accepted to core, decline core, don't get $15k
Point is if you are accepted in to the core program then clearly you are good enough to get the $15k. But if you decide to NOT enter the core program, they seem to pull that $15k which clearly you are good enough for.
For some startups, they might actually prefer the no strings $15k over the more money and network but giving up equity.
Now of course YC is not obligated to give anyone $15k. But it seems they are pulling the $15k which they consider you at least good enough for, if you don't accept their terms. Which is again their right, though should be clear.