"Graham is the cofounder of Y Combinator, the investment firm that plugs seed money ($18,000 on average) into early stage startups in exchange for mentorship and access to its ever-growing network of alumni."
Maybe I'm not understanding this right, but the phrase "in exchange for", seems like it should have read "in addition to". Can someone please clarify?
Maybe not the most clear sentence since it leaves out the equity part; it's conveying that it provides seed money plus mentorship/networking in exchange for a modest equity from the startup.
Could be better organized as:
"... Y Combinator, the investment firm that plugs seed money (~$18,800) into early stage startups and offers mentorship and access to its ever-growing network of alumni, in exchange for a modest equity (~7%) of the startup."
Maybe I'm not understanding this right, but the phrase "in exchange for", seems like it should have read "in addition to". Can someone please clarify?