
Y Combinator
Description
Y Combinator, headquartered in Mountain View, California, stands as one of the world's most influential and prestigious startup accelerators. Founded in 2005, it pioneered the seed-stage accelerator model, providing early-stage companies with capital, mentorship, and a robust network designed to accelerate their growth. YC's rigorous program, conducted in two batches annually (Winter and Summer), culminates in a Demo Day where founders present their progress to a curated audience of investors.
The accelerator's standard investment terms are a significant draw for aspiring founders. Y Combinator typically invests $500,000 into each company accepted into its program. This investment is structured as $125,000 for 7% equity on a post-money SAFE (Simple Agreement for Future Equity), alongside an additional $375,000 on an uncapped Most Favored Nation (MFN) SAFE. This standardized approach simplifies the initial funding process, allowing founders to focus on product development and market fit rather than protracted fundraising.
Y Combinator's impact on the global startup ecosystem is profound. As of early 2024, it has funded over 4,000 companies across a diverse range of sectors, including software, hardware, biotech, and consumer goods. The combined valuation of YC alumni companies exceeds $600 billion, featuring household names such as Airbnb, Dropbox, Stripe, Coinbase, Reddit, and DoorDash. Its extensive alumni network and ongoing support resources provide a competitive advantage for its portfolio companies, solidifying its position as a critical launchpad for high-growth ventures.
Investor Profile
Y Combinator has backed more than 5,163 startups, with 740 new investments in the last 12 months alone. The firm has led 1,876 rounds, about 36% of its total and boasts 572 exits across its portfolio.
Investment Focus Highlights
- Concentrates on Seed, Pre Seed, Series A rounds (top funding stages).
- Majority of deals are located in United States, India, Canada.
- Strong thematic focus on Software, Artificial Intelligence (AI), Information Technology.
- Led 466 rounds in the past year.
- Typical check size: $500K.
Stage Focus
- Seed (45%)
- Pre Seed (36%)
- Series A (8%)
- Series Unknown (4%)
- Series B (3%)
- Series C (1%)
- Angel (1%)
Country Focus
- United States (75%)
- India (4%)
- Canada (3%)
- United Kingdom (3%)
- Mexico (1%)
- Singapore (1%)
- France (1%)
- Germany (1%)
- Nigeria (1%)
- Indonesia (1%)
Industry Focus
- Software
- Artificial Intelligence (Ai)
- Information Technology
- Fintech
- Saas
- Financial Services
- Health Care
- E-commerce
- Internet
- B2b
Frequently Asked Questions
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