Let's simplify this even more - risk. Getting into YC reduces perceived investor risk. Full stop. It doesn't reduce the actual risk that the investment won't f

Let's simplify this even more - risk. Getting into YC reduces perceived investor risk. Full stop. It doesn't reduce the actual risk that the investment won't fail, but it's much easier on our brains to say "Well these guys are a YC company and YC companies tend to do well. If they don't do well, there is at least a support network of partners/alumni to ease the pain". There is nothing worse for an investor to speak to someone they don't know, or don't have any connection to. There are two simple ways to increase your chances of funding: (1) get so much traction without funding that any investor would be dumb to pass you up or (2) be massively connected. Both aren't easy but they are by far the strongest signals right now to investors. So is any incubator "worth it"? For many early stage startups, the answer is categorically - "yes". If you break down the cost-to-benefit ratio, the cost of doing an incubator is usually very low, while the benefit can be and normally is very high. Last note - people often neglect the notion of high profile investor's ability to "cast a wider net". This is one of the huge benefits to YC. Getting a good investor on board isn't always just about capital. They can prove to be a huge part of your marketing plan.