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Comment by synergy20 | Hacker News Reader

So, assuming I apply and got accepted, am I getting the 500K, or just the 125K, or nothing until something further happened?

I thought about applying but honestly 125K was not exciting enough for me :), now I just went to re-read the terms, it seems to be 500k(split for 7% etc) instead, which will be enough to make me applying, question is, how will I get them if I am accepted? first day, a few weeks later, or what.

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You get the full $500k upfront. In exchange, YC gets 7% equity upfront (for the first $125k), plus a proportional share of equity in your next funding round (for the next $375k).

That is around 5 months operating capital in a small company.

Most would laugh you out their office asking for 7% of equity.

I often wonder if people understand why 1:23 companies survive the startup cycle.

Best regards =)

It … depends on the company. Some “small” companies have a burn rate of 20k, some 200k, some 2M.

YC isn’t about the money. The equity you give away is also for the seal of excellence it carries, and the network it brings.

I would gladly give 7% of my small company today for YC’s network and seal alone, and 10% of the money they give.

To me... business is about the market sector size, product/service viability, and profit model.

The fact is liabilities come in many forms, and small mistakes may cast a long shadow if you are a startup.

Best of luck =)

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