My wild speculation is that taking equity in exchange for the money simplifies legal and tax status for both parties by framing the relationship between the company and YC in a well precedented way. But I am neither lawyer nor accountant.<p>Anyway, my gut suggests that pressure cooking a company to go public or raise a big round for the sake of a possibility of $1.5 million probably isn&#x27;t highly ranked among the ways YC can direct effort for return on capital. That YC won&#x27;t have a stake in a $50 million dollar acquisition may indicate how pennies and nickels are seen by YC.