YC takes 7% of any startup wanting to join, and in exchange, the firm invests $125,000. For a SWE/PM at MAGA or a company like Snap, Uber, etc, 125k is arguably not a lot of capital but 7% is a lot of equity.
7% is really not that much equity. Sure $125k isn’t a lot but they’re giving your business a free almost $2 million valuation
I’ve talked to partners from sequoia and a16z and they always say the equity y comb takes is laughable
Laughable as in way too much, right?
Or way too less?
Y combinator is great if you are a first time founder or have trouble getting going. If you have been around a while, a lot of the stuff like how to get an office, set up payroll, start sales, it's kind of old hat
They now do $500K. Also, they are worth it if you are at idea or early MVP stage because they make it easier to raise a sizable seed round. Their alumni network is also worth it, especially if you’re B2B, since you can get some early customers through that network.
Does YC provide any other resources? There is probably non-zero value in being able to say you’re a YC startup It’s like going on shark tank. Part of it is money, but also getting connections or resources from mark cuban
How to build connections for startup funding ?
It no longer is. Those days are gone.
This right here, it made sense early 2010s, nowadays that money doesn't help you all that much, most of their connections you can also get if you try a little harder networking. There's tons of knowledge on the internet. If your product is good and you can market it, you're good to go.