Y Combinator
Y Combinator — Startup accelerator investing in early-stage technology companies
About
Founded in 2005 by Paul Graham, Jessica Livingston, Robert Tappan Morris, and Trevor Blackwell, Y Combinator (YC) is a startup accelerator that provides seed funding, mentorship, and resources to early-stage technology startups. Operating twice a year, YC has funded over 5,000 companies, including notable names like Airbnb, Dropbox, Stripe, Reddit, and Coinbase. The organization offers a standard deal of $125,000 for a 7% equity stake, with an additional $375,000 on an uncapped SAFE note with MFN terms. YC's investment focus spans various industries, including healthcare, energy, software, education, fintech, logistics, SaaS, artificial intelligence, internet, cybersecurity, robotics, biotechnology, marketplaces, consumer internet, and enterprise software. The firm invests in pre-seed, seed, and early-stage companies, with typical investment sizes ranging from $125,000 to $500,000. In 2017, YC raised up to $1 billion for a new venture capital fund, signaling its expansion beyond its accelerator origins into a broader investment entity. In April 2024, YC invited its alumni entrepreneurs to invest in the three new venture funds it was raising, with each participating alum contributing a minimum of $250,000. This move formalized alumni involvement at the fund level, integrating early- and growth-stage funding as part of a broader investment approach.