This also struck me.  It seems as though YC gives you $120K, advice, contacts and exposure.  Obviously it&#x27;s worth $120K plus whatever the other happens to be worth.  They take equity from the company in return.<p>Paypal offers a necessary service to a company (payment).  They charge a service fee.<p>I&#x27;m not going to say YC isn&#x27;t useful or worth the equity for some people.  However, you&#x27;ve got think that a $120K loan is pretty damn cheap these days.  Also, I pay my accountant a few thousand a year and he gives me incredible business advice.  Possibly I&#x27;m just lucky, but I suspect that young founders do not really understand the options they have open to them for growing a business.<p>I view my accountant as a necessary business expense.  I even get to write off the money I pay him from my income.  That&#x27;s more like Paypal.  Similarly, on a loan, I have to pay interest.  That&#x27;s a cost (and possibly necessary expense).  If I need to pay a consultant to help me improve my image or make contacts, that&#x27;s a cost.<p>Giving away part of your company for a service?  Not at all like Paypal :-)  Personally, I&#x27;d rather pay an expense than give up part of my company.  Obviously depends on the situation, though.