Brilliant! I think everyone involved benefits: * More startups get to receive YC aid and funding, and these startups are more likely to have (as a group) advic

Brilliant! I think everyone involved benefits: * More startups get to receive YC aid and funding, and these startups are more likely to have (as a group) advice from/access to a top-tier VC firm. * YC gets to fund more companies, while spreading the additional risk and reward around. This also means they get to expand the YC alumni network at a faster rate. * Sequoia gets to invest, via YC, in web companies that may not need big enough rounds of funding for it to directly be worth Sequoia's time. And they arguably get a slight edge in investing in those YC startups that do wind up wanting more money later. (I am not at all saying they have an official edge, but if they are somewhat familiar with a company from the YC stage, they'll have a slight natural edge. That's how familiarity works.) * Silicon Valley wins, because that's where this is all happening. I wonder who first broached the idea: YC or Sequoia?