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It is my understanding that YC only funds companies that have a shot at being unicorns (I am happy to be corrected here). If you are aware of this fact, and a "lifestyle" business is your goal -- is it not dishonest to accept YC money?

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If you look at the companies it funds that is obviously not even remotely the case. You don't have to lie. And even the most lifestyle business still wants to increase sales. I'm not sure the OP would even agree with the label lifestyle business.

>Take the money and play your own game.

Any example here?

Minority investors have zero control over you. People think they have to play the VC's game and they simply do not.

The level of control depends on the term sheet. As far as I understand, there is always a degree of control/preference, even when VC's share is minor. I haven't heard of term sheets that would give total carte blanche to the founder.

As with everything, the devil's in the details.

If your funding arrangement allows a minority investor to veto future fundraising, subordinate liquidation preferences, etc etc, they can kill your company.

Of course, most deals aren't on such onerous terms - but they do happen.

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