I'm not sure they're completely nuts - if you set out looking for exceptional people, then you are already not talking about 'most people.' 3% for $5,000 and an option of total 8% for $25,000 seems a bit steep to me, especially over an eight year period. Let's say I start two companies over an eight year period. That's 3% of each now for $2500 initially per company and the option of an additional 5% in both or one for $20,000 per.
I don't want to shit on this because I think it is coming from a good place, but this sounds to me like the Thiel Fellowship meets YC with worse terms, at least as it applies to people building companies. It may make sense for poets and artists, but I also notice that none of the founders are artists, and while Hollis Robbins is awesome, it might not be able to accelerate an artist's career in the same way it could a founder's.
I don't want to shit on this because I think it is coming from a good place, but this sounds to me like the Thiel Fellowship meets YC with worse terms, at least as it applies to people building companies. It may make sense for poets and artists, but I also notice that none of the founders are artists, and while Hollis Robbins is awesome, it might not be able to accelerate an artist's career in the same way it could a founder's.