About this programme
Y Combinator (YC) is a startup accelerator based in San Francisco that funds and mentors early-stage companies in exchange for equity. It runs on a batch model: cohorts of founders go through a fixed-length program together, receive investment on acceptance, and work with YC partners through weekly office hours and group events.
The "Standard Deal" is the investment terms YC offers every company it accepts into a batch. It is a single, non-negotiated deal applied uniformly across the batch rather than a case-by-case term sheet, which is part of how YC keeps the acceptance-to-funding process fast.
Beyond the capital, batch participation gives founders access to YC's partner network, alumni community, and the Bookface platform, along with an in-person kick-off and ongoing group office hours during the program.
How it works
YC invests $500,000 total in each accepted company, split across two instruments issued at the same time.
$125,000 is invested via a Post-Money SAFE that converts into a fixed 7% equity stake in the company at the priced financing round, calculated after other convertibles and the option pool are accounted for.
The remaining $375,000 is invested via an uncapped MFN (Most Favored Nation) SAFE. This tranche has no valuation cap of its own — it automatically takes on whichever terms (lowest cap or best discount) were given to any other SAFE the company issues during the batch period through its priced round.
YC also receives pro rata rights, letting it invest further in later financing rounds to maintain its ownership percentage as the company raises more capital.
The investment is made as soon as a company is accepted — YC does not wait for the batch's official start date, and funding is not contingent on hitting any milestone.
Who can apply
YC funds startups from the idea stage through companies already generating meaningful revenue — on average, about 40% of companies in a given batch start as just an idea at the time they apply, and YC states that a smaller share (around 7% of recent batches) already had more than $50,000 in monthly revenue when accepted.
Companies must be able to incorporate (or restructure an existing entity) in the US, Canada, Cayman Islands, or Singapore, since YC's investment instruments are issued against a company incorporated in one of those jurisdictions. International founders with an existing entity elsewhere typically need to set up a parent company in one of the four.
Solo founders are regularly accepted, though YC's stated preference is for a founding team with the technical ability to build the product itself.
The batch runs in person in San Francisco, starting with a 3-day in-person kick-off, so participating founders need to be able to relocate for the program's duration.
How to apply
- Submit an application online at apply.ycombinator.com for the relevant batch (YC runs four batches a year: winter, spring, summer, and fall).
- Applications submitted by the regular deadline receive a decision by a stated date; late applications are still accepted but without a guaranteed decision timeline.
- If the application is promising, YC invites the founders to a video-conference interview.
- YC typically makes a decision the same day as the interview and gives detailed feedback to everyone who interviews, whether accepted or not.
- If accepted, the investment is made immediately — YC does not wait for the batch to start to fund the company.
Frequently asked
How much does Y Combinator invest and for how much equity?
YC invests $500,000 total: $125,000 for a fixed 7% equity stake via a Post-Money SAFE, plus $375,000 via an uncapped MFN SAFE that takes on the best terms given to any other SAFE the company issues before its priced round.
Are there any fees or conditions attached to the YC deal?
No. YC states the Standard Deal has no fees and no contingencies — the investment is committed on acceptance and does not depend on the company hitting any milestone.
Do I need traction or revenue to apply to YC?
No. YC funds companies from the idea stage — about 40% of each batch starts as just an idea — through companies with meaningful revenue; YC states around 7% of recent batches already had more than $50,000 in monthly revenue when accepted.
Can solo founders apply?
Yes. YC states it regularly accepts solo founders, though it generally encourages applying with a co-founder and expects the founding team to have the technical skills to build the product.
Is the YC batch remote or in person?
In person. The batch takes place at YC's campus in San Francisco, starting with a 3-day in-person kick-off, followed by weekly in-person meetups for the rest of the program. Founders may relocate elsewhere once the 3-month batch ends.
What entity structure does a company need to receive YC investment?
The company must be incorporated in the US, Canada, Cayman Islands, or Singapore. Founders with an existing entity elsewhere typically need to restructure so a parent company sits in one of these four jurisdictions before the investment closes.
Can a company reapply to YC after being rejected?
Yes. YC notes that about half the companies in a typical batch had applied at least once before being accepted, and encourages founders to reapply once they have made further progress.
Reviewed 2026-08-16. Programmes change — confirm current eligibility, amounts and deadlines on the official page before you apply. CapEasy is a private consultancy and is not affiliated with any government authority.