Honestly, this is not a hard question. We're not asking you what you think we want as a return. We're asking what you'd take.
So if you think 3 million is a fantastic deal, then you haven't answered the question correctly. We're not asking what you think would be a fantastic deal, but what would be the worst deal you'd still accept. Would you really turn down 2 million for three months' work?
Incidentally, we don't even think about what we want as a return. Some VCs may, but we don't. We just fund anyone who seems good, and assume the returns will take care of themselves.
Again, it depends on how exactly you imagine the situation. If the choice was acquisition by Google for $2 million, or probable destruction by Google in a year...certainly I would take the former.
On the other hand, if I was passionate about the product and thought there was great potential for growth over the next few months and years, I wouldn't want to walk away for anything less than a fantastic deal.
I appreciate your focus on excellent people rather than returns and dealmaking. The profitability of YC strikes me as an interesting question simply because it's an important aspect of a model that is unique and interesting in many ways.
What a relief! Thank you for sharing that. After watching everyone talk in millions here, I was concerned my "absolute worst" deal that stretched below $100k might hurt our chances of being accepted to YC. I am going to go ahead and put in an honest estimate :) thanks,
So if you think 3 million is a fantastic deal, then you haven't answered the question correctly. We're not asking what you think would be a fantastic deal, but what would be the worst deal you'd still accept. Would you really turn down 2 million for three months' work?
Incidentally, we don't even think about what we want as a return. Some VCs may, but we don't. We just fund anyone who seems good, and assume the returns will take care of themselves.