$20k is enough to get a boatload of applications. YC is limited by the # of people they can invest in, NOT by the # of applicants. They are constantly turning

$20k is enough to get a boatload of applications. YC is limited by the # of people they can invest in, NOT by the # of applicants. They are constantly turning away great startups due to having limited slots. Upping the amount they invest per startup would only help them if they took commensurately more equity ($80k = 24%+). With limited slots, they are simple trading great startups with lean-living co-founders for great startups with a higher price tag. Who isn't applying? The YC process is -- survive 3 months on ~$20k. Survive 3-4 more months as you raise more money or get to profitability. Presumably you have savings or friends/family you can borrow from. How about a HELOC? Honestly, if you can't find some way for 2 people to survive on $20k for 6ish months, you're probably either a pretty lousy life-hacker or you've had some bad luck. Either way, you're a bad bet compared to the alternatives. But, again, if your startup is badass compared to YC applicants, fundraising shouldn't be a problem.