First answer nails it. If you're taking a risk and taking a hit to your income, you're a cofounder. Congratulations, and enjoy your equity. If you're not getti

First answer nails it. If you're taking a risk and taking a hit to your income, you're a cofounder. Congratulations, and enjoy your equity. If you're not getting a big slug of equity, you're an early employee; enjoy your below-market, but way-above-subsistence, salary. One would hope that YC companies aren't abusing their brand and cachet in order to underpay employees. It's not necessary; given the capital available to these companies, and the caliber of people willing to work for YC firms, the optimal solution is to raise the funds you need and hire the people you need, not to hire the next tier down at a rock-bottom rate.