Is Y Combinator Asking Too Much Equity For $120K Worth Of Funding?
Is Y Combinator asking too much equity for 120k worth of funding? This question originally appeared on Quora, the knowledge sharing network where compelling questions are answered by people with unique insights.
Answer by Jason M. Lemkin, SaaStr Fund. Co-founder/CEO at EchoSign (acquired by Adobe),
Here’s my learning.
I’ve invested in 4 YC companies. I’ve met with about 20, maybe a few more than that.
I ask all the founders I meet that have been though various “accelerators” if it was worth it. Because as a 2x founder myself, I see all of this as expensive.
With accelerators (or whatever you call them) in general, founders generally pause, qualify their answer. Was OK. Was fine. Was worth it, yeah, because we knew nothing.
Unless it’s YC. No matter what their criticisms or thoughts are — especially as the classes have gotten large and diverse in types of companies — they all say it was 100% worth it and have no regrets on the equity side.
So there you go.
This question originally appeared on Quora, the knowledge sharing network where compelling questions are answered by people with unique insights. You can follow Quora on Twitter, Facebook, and Google+.
Sign up for the Moguldom newsletter — the most compelling business news you need to know about reversing inequality in tech, delivered straight to your inbox.