You know, whether or not you think that the amount of the capital for the % of the company is good or bad, the cash isn't really the most enticing part of the YCombinator.

Yes, of course you have to be careful about giving away too much for too little, but YCombinator offers much more than just cash.

Paul Graham has a ton of experience and a ton of contacts. Having him, his team, his friends, and his firm on your side is a lot more important than the cash. Being able to take knowledge from these people, along with the other companies within YCombinator is a very important piece of the puzzle.

A lot of times, VC isn't about the cash, it's about the contacts and knowledge.