Paul Graham, or anyone "in the know", may we please hear a bit about what the equivalent of a term sheet looks like for a Y Combinator non-profit investment? Is Y Combinator giving a grant? Is Watsi issuing debt to Y Combinator? What's the financing model here?
One of the things I respect most about pmarca and a16z is that they donate the difference between real income tax rates and the bogus carry-as-capital-gains rates to charity (individually or as a firm, I forget).
I wish all VCs would do this, because carry-as-capital-gains is an incredible abuse of the system. I'm fine with founders getting this, and with LPs who invest cash, but VCs do not deserve preferential rates over other workers when they do not themselves take financial risk.
