Because 10k is a drop in the bucket for most startups. Expenses generally far exceed that, especially at the beginning.
Further, 6% is almost 1/10th of the entire company in terms of ownership.
It'd be like buying a permanent seat in someone's minivan, even if they replace the minivan for a lamborghini minivan in the future, for about $100 one time fee and a vague promise of "we'll help you set goals on how to get that lamborghini!"
Try to get into YC without an MVP. Again, it starts from 1% not 4%. 10k should be enough to build an MVP and with MVP and traction you would have much better chances of getting into YC. Indeed, we are looking to partner with YC.
1) Either way, for the money, no.
2) I understand how percentages work.
3) No, it's not. Not when there's living expenses and a pandemic going on.
4) Yes, exactly why your offer is nonsense.
Comments
Why?
Because 10k is a drop in the bucket for most startups. Expenses generally far exceed that, especially at the beginning.
Further, 6% is almost 1/10th of the entire company in terms of ownership.
It'd be like buying a permanent seat in someone's minivan, even if they replace the minivan for a lamborghini minivan in the future, for about $100 one time fee and a vague promise of "we'll help you set goals on how to get that lamborghini!"
It's a nonsense offer.
Exactly.
Y Combinator's standard terms are $125k for 7% with an established/trusted brand and deep investor network.
No one should be duped into giving up the same level of ownership for 4% of the capital and (presumably) a less well-known brand.
Try to get into YC without an MVP. Again, it starts from 1% not 4%. 10k should be enough to build an MVP and with MVP and traction you would have much better chances of getting into YC. Indeed, we are looking to partner with YC.
You have a right to express your opinion, but your comment is misleading:
1) 6% is not almost 1/10. It's almost 1/17
2) It starts with 1% which is 1/100
3) 10k is enough to build an MVP in most cases
4) The "seat" is going to become smaller and smaller as you issue more shares for options and new investors
1) Either way, for the money, no. 2) I understand how percentages work. 3) No, it's not. Not when there's living expenses and a pandemic going on. 4) Yes, exactly why your offer is nonsense.