Agreed. It's kind of like when a non-profit organization argues that they are entitled to someone's data because "we're not making a profit off of it." That's ridiculous.

Try asking a startup for free software licenses or seats or whatever as a non-profit. "We're entitled to 40 seats of your SAAS solution because we're a non-profit working to solve world peace." It's definitely within the startup's pervue to respond with a no.