Echoed from other places - but doing YC shouldn't be about the money or percentage ownership.
Yes, one day you'll look at the cap table and say, "man it would be great to have that x% to give to employees" - but very likely you're company will be in a dramatically different place progress-wise and valuation-wise, so it's a major net-gain.
Companies come into YC with nothing but wireframes and companies come in with six digit revenues. Both will exit dramatically further along, hyper-focused, and with higher valuations (in my experience). Companies that are unicorns or growing like crazy or have crazy utility get even higher valuations, and it all works out pretty well.
IMO standard deal makes things incredible simple and easy on the front end, without the massive majority of potential pitfalls (signaling, jealousy, negotiating time, etc)
"Echoed from other places - but doing YC shouldn't be about the money or percentage ownership"
If starting a business is not at least somewhat about the money, why not just have everything a non-profit?
I've gotten told this very thing, only to have a business-minded company use it to make money on my hard work and effort (you should be happy you get to work on something you enjoy..for 1/2 market value and 50+ hours/week)
I think he means the decision to do YC shouldn't be driven primarily by the benefit of the cash investment. Yes, the company should be driven to make money, but the transaction between the company and YC should be driven by the overall impact (on the company being able to make money), not on the investment amount itself.
No one (I think) is suggesting that you start a business without the intention to make money.
Absolutely only start a business because you are driven to make something people want, customers & users love, and to create wealth for you, your partners/ shareholders/ stakeholders involved.
My point re YC is that decision should not be made by weighing the pro's and con's of the money and equity stake you will give up for it (vs other investors for example). The investment money is a tiny fraction of the total value/ resources that YC brings to the table.
Yes, one day you'll look at the cap table and say, "man it would be great to have that x% to give to employees" - but very likely you're company will be in a dramatically different place progress-wise and valuation-wise, so it's a major net-gain.
Companies come into YC with nothing but wireframes and companies come in with six digit revenues. Both will exit dramatically further along, hyper-focused, and with higher valuations (in my experience). Companies that are unicorns or growing like crazy or have crazy utility get even higher valuations, and it all works out pretty well.
IMO standard deal makes things incredible simple and easy on the front end, without the massive majority of potential pitfalls (signaling, jealousy, negotiating time, etc)