Re:Ask HN: Is $5k really worth 5%?
by wmf on Saturday March 21, 2009 @12:22PM
(#526262)
This has been answered before. YC isn't about the money; it's about the advice and connections. If those things increase the probability of your company's success by more than 5%, YC is a good deal. If you can do better on your own, do it.
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The support that YC provides is definitely more valuable than the money they provide. With that being said, however, you can't discount the benefit of having that extra cash. $5,000 for 5% equity essentially valuates your company at $100,000. Ask yourself, would anybody outright pay that much for what you have built? On top of that, YC also provides an additional $5000 to cover living expenses. Thats a deal if I've ever seen one.