One thing I love about Y Combinator before today is its austereness. Walk into InDinero’s original office, for instance, and you’ll see it actually is a house, where several people live, which keeps costs way down. This is typical for a Y Combinator company. The $17,000 they usually gave companies just doesn’t go far in expensive Silicon Valley.
Lately, however, companies like InDinero have been getting $1 to $5 million in angel or A rounds, which lets them get a real office. So, I’ve already noticed that I’m seeing fewer Y Combinator companies in low-cost situations like what I saw at InDinero.
Today, it was announced that Y Combinator companies could get a loan of $150,000 from Ron Conway’s SV Angel and Yuri Milner.
No longer will we hear stories like we heard from Airbnb’s founders of surviving off of cereal or “ramen.”
That bums me out, because struggle and sacrifice makes for great stories.