We should go back and see if the predictions implicit in the offers correlate at all with how the startups have done.
6% seems like a 200% profit if each yc startup generates a 1 million dollar investment.
If the VC deal rate is closer to 1 in 10 or 1 per year, it looks like you need one $10 million dollar deal a year, each of which needs to have a potential of $250 million eval, or $25 million a year in revenue before the VC will be interested.
So my question is, if a team can demonstrate "real" projections with lower than average risk, and demonstrate a 2 year projection of greater than $25 million a year would you consider an offer of less than 6%?
My second question is, since we are in the Midwest, "What exactly is a rockstar?" ;-) We have Billy Corgan, and Garbage to be proud of, but the coasts seem to be more keen on the idea of the "rockstar," so, what are the characteristics of a "tech" rockstar?
...decisions will include the amount we'll invest and the percent of the company we'd want for it. We usually invest $5000 + $5000n, where n is the number of participating founders (i.e. 2 founders get $15,000, 3 get $20,000), in return for between 2% and 10% of the company. The median is 6%.
The money itself is NOT the reason to sign up for YC.