&gt;Each startup that goes through the three-month program now receives$120,000 in cash — $20,000 from Y Combinator, plus $100,000 from the outside investors – in exchange for 7% equity in their company.<p>$120k for 7% in a company!?  Is that really a favorable term to startups?  There&#x27;s <i></i>no way<i></i> I would <i></i>ever<i></i>, EVER sell 7% of my company for a such a small sum.  Who would sell out their passion for such a pittance?<p>It&#x27;s very possible I&#x27;m missing something here, because my impression is that YC truly tries to act as a partner with founders.   I just can&#x27;t see giving a go at a startup - with all that entails - for an idea I believe is worth only $1.7M (even at the nascent stage).