The fact that startups don't have to pay to demo is a significant improvement over similar events. That pay-to-demo mentality is left over from the overfunded startups of the Bubble.
It looks like they want you to actually provide something there first that has not been live before. Their application, though, includes stats on your current website, so I guess their plan is to focus on some new feature to be presented there for the first time. They also want you to explain how their conference is causing your company to accelerate development, etc.
I don't see any downside in applying or getting the media attention of getting selected. One option: get selected, get the media attention, then forgo any radical high trajectory bubble bursting funding proposals, and then use that momentum to get into YC.
This event is quite different from YC. It's for VC / Preferred Stock funding, not the true seed / Common Stock funding provided by YC. As you can see, the main sponsor is Sequoia.
Paul - re common/preferred issue - as an entrepreneur, it's a huge deal to me and my co-founders.
Here's a relevant excerpt from Venturebeat:
"...VentureBeat thus believes Y Combinator's approach offers an advantage to entrepreneurs because they are not held hostage by the often onerous privileged rights that preferred shareholders often demand, such as minimum payouts upon acquisition or dissolution, rights to receive compensation before common, or anti-dilution rights. Common stock aligns the interests of Y Combinator with the interests of the founders and employees, who also hold common."
Preferred stock is only as bad as the terms that come with it. And that's a continuum. If you have preferred stock with no particularly onerous special rights, as for example we bought from Justin.TV, then it's no worse for the founders than common. Better, in fact, because you can claim a lower value for common shares when you give them to new hires.
Ok. this is not about funding, but it sure can get you more funding then you would want. The point is if you have a great product this launch pad could help you get tremendous attention.
