You're confusing two different transactions. The standard initial deal offerred to YC acceptees is $120k for 7%. Money raised at demo day, at the end of the 3

You're confusing two different transactions. The standard initial deal offerred to YC acceptees is $120k for 7%. Money raised at demo day, at the end of the 3-month program, is from other investors — whomever you can manage to interest — and on distinct terms negotiated with those investors at the time.