I think it can both be true than a $500k SAFE is marginally worth it and also true that given YC’s existing ownership at 7%, centralizing more equity isn’t. At

I think it can both be true than a $500k SAFE is marginally worth it and also true that given YC’s existing ownership at 7%, centralizing more equity isn’t. At the end of they day you’re only going to raise so much in your next round and half a million is a lot of space taken up by one investor (who is already motivated to help you if you only do 7%.) I have a couple batchmates who opted out of doing YC again because the equity was too high and that was pre-additional 375k SAFE. On the other hand it is 500k less that you have to raise to close a round and 500k you have if you can’t raise or want to wait to raise. So he doesn’t not have a point. It depends a lot on the company. But to his accusation that YC only cares about the top 10 companies, I think this additional money—which is optional!— disproportionately helps the not-top ten.