That is why I added in "reasonable terms." The terms I've in deals lately seen have been very favorable for the founders. Not as loose as an angel round but much better than I've seen for similar deals in the past. As John Dahl hints, a lot of the deals are convertible debt deals.

I only mention this because from my immediate perspective it seems easier to raise $100-$500K in NYC than it does to raise $10K from Y Combinator. Which is the better deal? I couldn't tell you.