Ask HN: Does YC fund startups that don't plan to have a >$5M valuation?

I have an idea for a service I want to build, that I think I'll be able to sell to big tech for $2M-20M (not sure how much exactly yet)

Based on YC's "standard deal" it seems like they're investing in companies which have plans to exit for much larger figures (their minimum investment is 500K, with 125K of that for 7% of the company)

TBH, I don't really understand how the MFN terms of the remaining 375K works, but since it's a relatively simple service I expect to be able to build and grow over the course of a year, I don't expect to need more than 125K.

Does YC invest in companies that don't have "massive" potential?