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I'm a bit confused.

The YC VC program (and it's earlier incarnation) made sense to me because VCs wanted access to YC deal flow. But now with the new program traditional LPs are investing at the same time (i.e., acceptance to YC) as YC LPs, but with much worse terms.

Maybe I'm missing something here?

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Part of it would have been access to YC deal flow, sure.

But to me it was also like an index fund - i.e. invest in the basket of companies rather than picking and choosing because on aggregate the group is going to do very well.

Really, you're blind betting on YC having chosen a few winners in the cohort. Not a bad bet to make!

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