This is why YC is amazing and why anybody who says they ask for too much equity is an idiot. Most investors won't invest until you have traction and prove out a bunch of risk. YC used to invest when all you had was an idea, and now you don't even need that. Bad ass.
I dunno, it feels like there's enough noise and low-value startups in the ecosystem already I can't help think this is a little predatory and simply further dilutes the perception of value to investors outside the YC fold.
That's actually why this is great. There are low-value startups out there because naive people start companies that aren't good ideas. Meanwhile, great founders realize their ideas aren't that good and don't build companies. YC is going to find those people, help them curate their ideas, and get them on their way to building meaningful companies. It's as far from predatory as you can get. It's giving great people the tools, resources and support they need to do big things.
