

Does YC penalize startups with pre-YC funding? - furiouslol

Are YC applicants who have some funding prior to YC application disadvantaged?<p>Would you accept offers of angel fundings (about $100,000 in exchange for 10% equity) if you are applying for YC?
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We don't discriminate against startups who've taken funding, unless the deal
is so overreaching that no later stage investor would touch them. For example,
we once rejected a startup whose investors had something like 90% of the
stock, because a company starting out with that much stock already belonging
to investors is doomed.

If you think you have a good chance of being accepted by YC and you want to
take some investment now, I'd try to take it in the form of a convertible
note. If the round has a fixed valuation, YC would be a "down round."

