4 ms·
I actually agree with this. I'm a 35 year-old entrepreneur and enjoy following the YCombinator stuff. Like clockwork, when I mention the idea of YCombinator t
by webwright 20y ago
I actually agree with this.
I'm a 35 year-old entrepreneur and enjoy following the YCombinator stuff. Like clockwork, when I mention the idea of YCombinator to other elder entrepreneurs like myself, they say, "Pish Posh. $5k per founder for 5% of equity?!"
The reality is that you have a pretty low chance of success. If you can eek out a few more percentage points by giving away a small slice of your company, it's worth it. Whether it's to YCombinator or a key employee.
And, I'd also point out this-- Willingness to give away equity for increased chance at success shows that you are committed to the idea of business success (rather than the idea of personal wealth).
- mes 20y agoI'm puzzled by the reaction of "$5k per founder for 5% of equity?!" I've been eagerly reading about YCombinator and it seems to me that they are offering a great deal more than money. It appears that the value of their consultation, connections and the other founders you end up spending time with are probably worth far more than the 20k-ish they invest in your company. I can't imagine not taking their deal if I had an appropriate startup. 5% of equity in something that is currently completely speculative in return for what appear to be world class consulting and networking services? If they maintain their current success rate, I think it's safe to say that far from being expensive, YC is spectacularly cheap and leaves a lot of money on the table. Which is probably why they are getting 1400 applications for 10 slots.
- gyro_robo 20y agoIIRC this time they had about 500 applications and no fixed number of slots. In a previous round they had 30 interviewees and I think 13 were picked...