I'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 g

I'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.