>I think the issue might be the second part as, if I understand correctly, it means that YC is insulated against dilution without having to invest a penny more.

>I think the issue might be the second part as, if I understand correctly, it means that YC is insulated against dilution without having to invest a penny more. No this is incorrect. They have the ability to top off their investment to maintain their stake. Implicitly this investment would be at lower valuation. This is a standard procedure for most 'early stage' accelerators although yc is hardly early stage