A smaller check size hurts startups in capital intensive industries. Others already made excellent points about the diversity if founders that can be attracted

A smaller check size hurts startups in capital intensive industries. Others already made excellent points about the diversity if founders that can be attracted with a smaller check size, since less money favors people with money already in the bank or with easy "friends and family" rounds. I'd also like to add that smaller sizes work against company and market level diversity as well. If YC is purely for software, sure, but they've been trying to fund hardware/biotech/etc, and you need that cash to build an actual prototype. Smaller class sizes makes sense as a proposal, but if you reduce funding to original levels as well, you'll be stuck with an overwhelming number of overrepresented demographic founders starting b2b SAAS companies. From a financial perspective that locks out a talent pool and limits your investment horizons in a pretty big way.