You have a fiduciary duty to your minority investors. They can sue your ass if you try this.
Look, I understand - if I was going to do it all over again, I'd go through the YC process. But I still do not understand what the purpose of that term is if they're never going to exercise it.
Fiduciary duties are murky, and what exactly would Y Combinator sue for? They'd spend 20x more in legal fees than they invested, and after they won, what would they get? None of their $15-20k back (would be gone in legal fees from the startup they sued, if it weren't already wasted) and control of a company that was comprised of 2 or 3 founders who are now gone for obvious reasons. In the end they'd end up spending a couple hundred grand on a mediocre domain name. Doesn't it seem far better to just have that provision?
I have no doubt they'll exercise that provision if they have to. Having that provision ensures they won't. It's like mutually assured destruction, in that having a large nuclear arsenal prevents both sides from ever using it.
Look, I understand - if I was going to do it all over again, I'd go through the YC process. But I still do not understand what the purpose of that term is if they're never going to exercise it.