This sounds great! I just formed a LLC today and will be launching my Twilio powered business in 2-3 weeks. It's web + iPhone app based app. Will be announcing soon here as well once my iPhone app gets approved.
$10K is not huge money for me, so that's not something which excites me, especially when I've revenue making plans from day 1. It's the network effect, PR effect, building relationships that one can achieve from these kinds of programs, excite me. I'm guessing this will be a great YC competitor, and in turn I hope it will return YC like after results.
I work at Twilio (but was not involved in this fund) but I was working on a Twilio-based startup before I started here a few months ago. I would have totally done this (in fact, I'm a little jealous that I can't participate). 1% for 10K is way better terms than a lot of the friends and family 'rounds' I've done in the past. If you use Twilio in your product or service and you're serious about making a business out of it, you should do this. It can't hurt to have 500 Startups, Dave McClure and Twilio have your back.
I feel like I should mention, if you don't want to wait until the end of November to start working on that fundraising for your Twilio-powered startup, we have a developer contest running through next Monday night. The winner gets a trip to NYC to have lunch with Fred Wilson (@avc), Albert Wenger, and Brad Burnham of Union Square Ventures.
Looked through the post but couldn't find any information on the price fixing mechanisms they're using for these deals. Normally it would be secret meetings in restaurants but I assume the trend as we go ahead will lean more towards secret skype conversations or secret emails.
I'm not planning on taking investment at this time.
I think this is a really good deal, though. The $10,000 is gravy, and not worth nearly as much as getting to pick Dave McClure's brain regarding distribution. (Metrics, design, product, too, but if you had to pick one of them, distribution is a strong choice.)
It just doesn't mesh well with the trajectory I'm shooting for at the moment. If that changes, I will start working on the first investment pitch delivered in rAnS0m n0tE.
My experiences with YC and TS companies indicate that the most valuable aspect of the programs are the introductions and knowledge sharing amongst classes.
Given that the dilution is minimal, I'd strongly encourage you to apply - you'll get $10K of value by getting accurate quick feedback from the other members of the batch on the question "is there a better way to do [x]?" I don't think the $10K obligates you to go out and get any additional funding, and Twilio will be a net positive in terms of PR and links.
And "500 Startups" is a nod to "500 Hats", Dave's personal angel investor brand. Which is a nod to a Dr Seuss book ("The 500 Hats of Bartholomew Cubbins")
$10K is not huge money for me, so that's not something which excites me, especially when I've revenue making plans from day 1. It's the network effect, PR effect, building relationships that one can achieve from these kinds of programs, excite me. I'm guessing this will be a great YC competitor, and in turn I hope it will return YC like after results.