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Am I the only one who thinks this is a bad deal in 2022? $500K is not much and you’re effectively giving up a big chunk of your equity for reputation and “acces
by lvl100 5y ago
Am I the only one who thinks this is a bad deal in 2022? $500K is not much and you’re effectively giving up a big chunk of your equity for reputation and “access”.
- mattnewton 5y agoMy impression has always been that you are paying a premium to have the YC partners, and their network, spend part of their day thinking about how to make your company succeed. That "access" seems pretty valuable? I have no idea how to value it though.
- R0b0t1 5y agoI'm not really sure I could launch a non-SaaS tech company on $500k, or rather, if I could, I could just not take their money and keep 7%.
- hiptobecubic 5y agoWell first, "I could just bankroll myself and save 7%!" is not how risk management works. Second, the level of privilege in this comment is astounding. $500k is a lot of money if you didn't grow up elite.
- R0b0t1 5y ago$500k is a lot of money but arguably not enough (for most things not strictly SaaS). So either the idea is small enough that it seems you don't need $500k and could probably bootstrap yourself or you're too big for YC and will never happen anyway. The privilege is assuming that your experience with SWE projects maps to everything worth doing.
- lvl100 5y agoThat’s not fair and I didn’t mean to come across that way. But a good portion of people who worked 5-7 years in SV (or in other tech hubs such as Boston, NYC, Seattle/PDX) have $$$ in the bank.