A similar argument was raised on another blog, to which Adam Siegel left an appropriate reply. Have a look: http://www.midasoracle.org/2007/02/22/are-nathan-ko

A similar argument was raised on another blog, to which Adam Siegel left an appropriate reply. Have a look: http://www.midasoracle.org/2007/02/22/are-nathan-kontny-and-adam-siegel-of-inkling-markets-being-exploited-by-paul-grahams-y-combinator/ Like most other hackers, I am not applying to YC for the investment. 5000(1 + n) is really not a large sum. In fact, I already have half that amount sitting in my bank account (student fees, :p). Our reason for applying to YC is to have the opportunity to create something larger than us (apologies for the cliche). There is no better place to do it than through Y Combinator. YC works at the same wavelength as its hackers; that is a considerable difference between a VC and Y Combinator. If you were an aspiring hip/hop musician, would you rather go to Shady Records for a record label or Donald Trump?