Discussion

• @ycombinator Y Combinator on x

  We're excited to announce our new standard deal at Y Combinator. When a company is accepted into YC, we now invest a total of $500,000. @gralston shares more on our blog: https://blog.ycombinator.com/ ...

• @bchesky Brian Chesky on x

  When we did YC, you got $20,000. Now you get $500,000. https://twitter.com/...

• @pt Parker on x

  This seems like this will the classic YC high-fidelity fundraising and I think that's a great thing. Startups are better off collecting soft commitments as they find a lead, then closing the round with more information. https://blog.ycombinator.com/ ...

• @ceonyc Charlie O'Donnell on x

  We still invest $125,000 on a pre-money of $1.6mm into the best startups that prob would have no trouble raising otherwise and for that gift we earn the benefit of getting 375k into the next round. Nice work if you can get it, for sure. https://twitter.com/...

• @judegomila @judegomila on x

  1/ YC standard deal -> $500k 14 years ago, @immad and I got $30k for doing YC We negotiated 2x normal amount ($15k) sitting on a sunny pavement with PG We got into YC months early but used all our budget on visas ($20k) and accom ($3k/mx3).... https://blog.ycombinator.com/ ...

• @garrytan @garrytan on x

  Y Combinator giving $500K to every founder is the right growth mindset move. If you want to start a company, you have an idea and a team, I think YC is the best place to start it. It was true for me in 2008, and it's true today in 2021.

• @immad @immad on x

  YC now investing an extra $375k comes as an uncapped MFN. Much better deal for most. My guess is that most pre-demo day investing also becomes uncapped MFNs, with a high cap when a lead comes in. Hot companies in the last batch were already doing this. https://blog.ycombinator.co…

• @mochievous Moe on x

  Local investors in Nigeria for instance are now open to writing bigger check sizes, we are actively seeing this. So yes it is possible to raise $500k locally and from angels. Now if you really want YC as an international founder, make sure to do this one thing.

• @mochievous Moe on x

  YC announced this deal and I'll like to talk a little about how it affects founders from Africa who get into YC. A lot of the communication on the TL are from YC competition so let me give a somewhat balanced view 🌚 https://twitter.com/...

• @davemcclure Dave McClure on x

  observation: some ppl are saying new #YC500K terms will squeeze out seed VCs / small funds. my guess is it's more likely “semi-pro” angel investors getting squeezed, or at least smaller and/or less value-added investors. 🤔 (fyi: “semi-pro rookie angel” = me, 15-20 yrs ago ;) http…

• @galeforcevc @galeforcevc on x

  YC is 3x'ing their investment. Smart. Very smart. VC is getting more competitive. What matters: 1-get lots of at bats as early as possible into potential big winners 2-buy more ownership to prevent dilution in these big winners YC now does both, and they will be a force. https://…

• @dunkhippo33 Elizabeth Yin on x

  2) In this new offer, although YC is offering more cash as part of it, this deal shouldn't be conflated with a $500k for 7% offer. This is not the same.

• @jbrowder1 Joshua Browder on x

  DoNotPay was rejected from YC in 2015. Separately, my best performing investment (100x+ increase in valuation) was rejected from YC. All the early stage investors whining about YC's new terms need to realize that there will always be room for independent judgement! https://twitte…

• @mochievous Moe on x

  Founders especially international founders should be given the choice. $500k is a lot of money for run way but many founders from Africa are able to raise much more than that post YC. Locking them in like this with no choice isn't ideal. the end

• @darrenmarble Darren Marble on x

  YC now invests $500k—$125k for 7% and an additional $375k on an uncapped SAFE with an MFN. But in a Reg Cf, you could raise the entire $500k for 5% or less, because *founders* set terms. Founders, you have options.

• @mgv_vc @mgv_vc on x

  Massive change, protecting their leadership in the industry. https://twitter.com/...

• @benparr Ben Parr on x

  YC has upped its initial investment to $500k, up from $375k. Same 7% deal. YC is especially great for founders who need the startup fundamentals bootcamp or can use the boost of the YC network because it's ridiculously strong. https://twitter.com/...

• @kevinakwok Kevin Kwok on x

  The new YC deal is interesting because it's actually worse than prior deal for companies doing well. And better for those struggling with funding A strictly better YC deal would have been 500k for 7% straight. Or letting founders selectively choose the $375k note

• @pitdesi @pitdesi on x

  @jmelaskyriazi let's say the average YC round gets done at $12M today. Let's say I want 15% ownership, that's $1.8m. Want helpful angels for $500k, that's another 4%, and YC already took 7%. That's 26% dilution; now YC is taking another 3+%.

• @aaron_epstein Aaron Epstein on x

  Pretty exciting news from YC: we now invest $500k into every company in the batch! If you've ever been on the fence about applying before, it's a total no brainer now. https://blog.ycombinator.com/ ...

• @austen Austen Allred on x

  Y Combinator now gives every company $500k. Pretty genius on YC's part. Every YC company automatically gets $500k. YC gets the 7% they always got (for $125k), and an extra $375k at the best terms startups get at demo day. YC is now the biggest and best post-demo-day investor. htt…

• @saraduit Sara Du on x

  due to inflation, the yc deal is now 500k, woohoo 🤠 https://twitter.com/...

• @adamdraper @adamdraper on x

  Welcome to the $500k accelerator club @ycombinator! More money to more ambitious innovators is what we need!! KEEP UP THE GOOD WORK!!!! https://twitter.com/...

• @rowghani Ali Rowghani on x

  A massive win for @ycombinator founders, in this batch and beyond https://twitter.com/...

• @judegomila @judegomila on x

  My prediction is YC will go cradle to !grave, open ended fund eventually, beefed up upfront deals, hard pro rata, continuity funds for A's, B's eventually all the way to public like Sequoia have moved in some respects. https://twitter.com/...

• @pitdesi @pitdesi on x

  YC has a new deal that is $125k for 7% and an additional $375k on an uncapped note w/ MFN. Good move for them but makes YC incompatible with seed-stage VC's that lead rounds... hard for us to get our ownership with that add'l $375k from YC. https://blog.ycombinator.com/ ...

• @gabrielnocode Gabriel on x

  Uncapped is very useful for early-stage startups. Give the flexibility to negotiate, doesn't raise the bar too high or set the starting line too low until the startup has a few customers. Well done @ycombinator https://twitter.com/...

• @braddwyer Brad Dwyer on x

  Wow, awesome for founders. Wonder how this will effect demo-day dynamics. https://twitter.com/...

• @svkpham Steven Pham on x

  We have some news to share this morning to kick off W22! https://blog.ycombinator.com/ ...

• @ulonnaya @ulonnaya on x

  Other accelerators to startups: Join us; we offer the same deal as YC. YC: Hold my beer. https://blog.ycombinator.com/ ...

• @alex @alex on x

  YC going to $500K is way overdue but nice to see

• @kateclarktweets Kate Clark on x

  Y Combinator says it's increasing the size of its standard investment from $125,000 to $500,000. https://blog.ycombinator.com/ ...

• @gralston Geoff Ralston on x

  We launched our W22 batch @ycombinator today AND announced our new $500k deal: https://blog.ycombinator.com/ ...

• @okassim Omar Kassim on x

  “..we now invest a total of $500,000. We still invest $125,000 for 7% and now also invest an additional $375,000 on an uncapped safe with an MFN” This is a great iteration to the current deal and will likely push founders to seek a higher cap on their first SAFE https://twitter.c…

• @towersben Ben Towers on x

  An extra welcome treat from @ycombinator. Investment into companies multiplied by 4. This alone shows the success of previous companies and how the pandemic has created a phenomenal time for tech startups to grow. https://twitter.com/...

• @ericnewcomer Eric Newcomer on x

  Big change at YC. New terms! https://blog.ycombinator.com/ ...

• @chrisjbakke Chris Bakke on x

  Love that @ycombinator continues to inspire new founders every year the same way they have for 16+ years. The new standard deal for YC companies is now $500k. https://blog.ycombinator.com/ ... My favorite was seeing @Suhail's $15k hand-written YC check from 13 years ago. https://…

• @katmanalac @katmanalac on x

  Exciting news: We now invest $500k into every company in the YC batch! Watching the faces/comments of the W22 founders when we announced this was delightful. What a good way to kick off W22: https://blog.ycombinator.com/ ...

• @patio11 Patrick McKenzie on x

  The substantive part of the announcement is also very worth pondering but don't miss “10 IPOs in 2021.” Crikey. https://twitter.com/...