It&#x27;s not that $120K is nothing, it&#x27;s that they already had $1M in funding, which they must have gotten way more cheaply than the YC money.  If you just value the company at the amount of money in the bank, the 7% stake they traded to YC is worth $70K today (of course it&#x27;s more complicated than that - I&#x27;m just spitballing numbers).