Is $5k really worth 5%?
froo: Well, apart from the fact that you got your math wrong (its $5k + $5k per founder) I'll give you a few other reasons why YC is worthwhile.1) Introductions to prominent VC's/Angels if you want to obtain further funding2) As a result of the process of getting into YC, it can somewhat validate your idea3) Having to pull it off in 3 months can really light fires under people's asses4) PG seems like a genuine bloke who really wants to help people. The mentoring aspect would be worthwhile.5) Constant feedback. You'd be surrounded by a lot of other YC alums who are very switched on people... Good things to be learned all roundI'm sure there are other reasons I failed to mention, but I think I covered the basics.EDIT - also, read PG's essay on the subject.http://paulgraham.com/ycombinator.html