You're talking about where his company is. I'm not saying he's not already doing great - he says it himself above.
My point is, if you're creative, directions to grow your company are not scarce. Resources to do-so are. If he is actually flush with cash, and doesn't know what to do with it, that's a fundamental problem.
It's not always a good idea to grow your company outwards - if you're good at what you do, it's better to do it even better than to start doing other stuff you're not good at. Oftentimes, bigger teams and more resources don't help with that.
History is full of companies (eg. Lotus, Evernote, Clinkle) that lost focus and floundered because they had too many resources available, and also of ones (eg. Apple after Steve Jobs's return) that took off after they cut their product lines and laid off people.
Let's say I have a fantastic sushi bar. I'm the main sushi chef and after a multi-year on and off frustrating search I finally found an assistant / apprentice. We have also have a waiter and a cleaner / busser.
I have lines out the door for the limited hours I'm open, even after raising prices three times. All my employees are well paid, including profit sharing and benefits.
Sushi Combinator wants to give me big multiples of annual earnings to take a minority stake in the business, but in exchange he wants me to try to increase revenue dramatically. Any of the ways I can think of doing so I believe, even if successful, will leave me less happy than running the business I have now.
First, I don't believe YC's only goal is to dramatically increase revenue.
Though, to entertain your analogy: Why not develop the next-level sushi fish? One that not only dazzles your exclusive audience in texture and taste, but is a delight to work with and more satisfying to cut.
> Should I take the money?
If you want to do big things, then yes.
If your happiness relies on staying a sushi chef, you are a sushi chef, not an entrepreneur.
My point is, if you're creative, directions to grow your company are not scarce. Resources to do-so are. If he is actually flush with cash, and doesn't know what to do with it, that's a fundamental problem.