WarPaul

https://github.com/payid-org

Again, I'll reference my aforementioned post above:

http://news.ycombinator.com/item?id=2388691

I guarantee that the judging has been drastically improved from last year. It's still too bad that you feel the way you do. I wish you continued success in your venture.

I don't see YC's 6% as being greedy or predatory at all. It's just different economic theory.

What PG did with YC is LEGENDARY. He was the first and will go down in history as one of the most pivotal figures in the entrepreneurial economy. The best explanation I've heard on YC's value add (or TechStars, etc.), is that it's like bringing on another co-founder, which makes perfect sense - as does your explanation above.

Looking forward to seeing future entrepreneurs continue to benefit from great program's like YC, TechStars, MC, etc.

I agree with you that this is another strategy and one the MC founders probably considered, however I think the purpose of the entry fee and endorsement process is to avoid a "Tragedy of the Commons" scenario and ensure that only the best startups make it into the competition.

Also, even with an entry fee last year, MC still saw 450 startups apply - imagine what that number would have been if it were free to all that apply? With such a small staff and the reliance on volunteerism for much of the operations, it would be very difficult to review thousands of applications and not let a few great ones slip through the cracks.

As a startup founder myself, I see the $199 fee as merely a cover fee to an awesome party with lots of brilliant, like minded, enthusiastic entrepreneurs and mentors.

Also "Mass" as in "the world's largest" (play on words I guess). Funny though, maybe someone should start a LeanChallenge based on Eric Ries' methodology.

Valuation is also based on the prior investment to equity ratio. How much money is invested in X startup for 6% equity? That would certainly effect the pre on any term sheet, no?

What does the 6% on the back end do to your valuation in later rounds? Assuming you do expect to take on more growth capital upon successful completion of YC. Not very much Coke left to enjoy after that...

You're right, I guess practicing your pitch in front of the mirror is better preparation for pitching a VC.

As a semi-finalist last year, I too had a similar experience with the judging, however after getting feedback from those that completed the surveys, MassChallenge hired software entrepreneur Karl Buttner, who also served as a mentor last year, as Chief Mentorship Officer. He's helping to combat cases like ours, and improve the judging/mentorship experience. I think he's even somewhere on this comment thread...

...and thinking you can build a billion dollar web app or online platform without engaging a single outsider is straight narcissism.

Any serious entrepreneur should care about the money, every penny even, which is why MassChallenge offers no equity taken.

For a $199 entry fee (which is automatically reimbursed to the entrepreneur upon securing a few endorsements that help to validate that crazy idea of yours), an entrepreneur gets access to a growing network of top attorneys, investors, mentors and industry leading, seasoned entrepreneurs. Not a bad deal, BUT, it is up to the entrepreneur to make the most of this value by being proactive and engaged.

Just to be clear, MassChallenge had a YCombinator startup - embedly - make it to the finals in 2010, so you can apply to both..