NOT YACHT MONEY: Y Combinator hopefuls might want to ask for ramen for Christmas as the incubator has redesigned its Start Fund. Founded almost two years ago, the program offered graduates from the YC program a $150k convertible note with startup-friendly terms such as no valuation ceiling and no discount on conversion. Founder Paul Graham explains that "$150k was more than the successful startups needed, and it sometimes caused messy disputes in the unsuccessful ones." The new program, dubbed YC VC, offers Y Combinator graduates $80k under the same terms and gives founders more face time with their VCs. Earlier this year Graham wrote to Y Combinator portfolio companies explaining that Facebook's poor IPO performance could hurt future funding.
