Y Combinator

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Y Combinator
Company typeLLC
IndustryVenture capital, Startup accelerator
FoundedMarch 2005; −2001–2002 years ago
FounderPaul Graham, Jessica Livingston, Robert Tappan Morris, Trevor Blackwell
HeadquartersSan Francisco, California, U.S.
Key people
Garry Tan (President and CEO), Sam Altman (Former President), Geoff Ralston (Former President)
ServicesSeed funding, mentorship, networking
Websitewww.ycombinator.com

Y Combinator (YC) is an American startup accelerator and venture capital firm founded in March 2005. It provides seed funding, mentorship, and networking opportunities to early-stage startups through a three-month program that runs four times a year. Based in San Francisco, California, YC has supported over 5,000 companies, including notable successes such as Airbnb, Stripe, Dropbox, Reddit, and Coinbase. The combined valuation of YC-funded companies exceeds $400 billion.[1]

History

Y Combinator was established in 2005 by Paul Graham, Jessica Livingston, Robert Tappan Morris, and Trevor Blackwell. Initially, the accelerator ran programs in Cambridge, Massachusetts, and Mountain View, California, but consolidated operations in Silicon Valley in January 2009 due to logistical challenges.[2] In 2009, YC received a $2 million investment led by Sequoia Capital, followed by an $8.25 million round in 2010, enabling support for around 60 startups annually.[3]

In 2011, Yuri Milner and SV Angel offered every YC startup an additional $150,000 investment.[4] In 2014, Sam Altman, a YC alumnus, became president, introducing a $150,000 investment for a 7% equity stake.[5] Geoff Ralston succeeded Altman in 2019, and Garry Tan became president and CEO in 2023.[6]

In response to the COVID-19 pandemic, YC held its summer 2020 batch remotely.[7] In January 2022, YC updated its deal to $500,000, including $125,000 for a 7% equity stake and $375,000 via an uncapped SAFE with a MFN clause.[8]

Programs

Y Combinator’s core program is a three-month accelerator, selecting four batches annually. Startups receive $500,000 in seed funding, mentorship, and access to a network of investors and founders. The funding includes $125,000 for a 7% equity stake and $375,000 via an uncapped SAFE with an MFN clause. Nonprofits receive a $100,000 donation.[9]

The program features weekly meetups with Silicon Valley entrepreneurs and venture capitalists, “office hours” for mentorship, and access to Bookface, a YC community platform.[10] It concludes with Demo Day, where startups pitch to investors and media.[11]

YC also offers the Series A Program, YC Post-A Program, and YC Growth Program for startups raising Series A and Series B rounds.[12] In 2015, the YC Fellowship Program launched for early-stage startups, evolving in 2016 to provide $20,000 for a 1.5% equity stake via a convertible security.[13]

Notable Startups

Y Combinator has funded prominent startups, including:

  • Airbnb – Short-term lodging and vacation rentals.
  • Stripe – Payment processing platform.
  • Dropbox – Cloud storage and file-sharing service.
  • Reddit – Social news aggregation and discussion platform.
  • Coinbase – Cryptocurrency exchange platform.
  • Instacart – Grocery delivery service.
  • DoorDash – Food delivery service.

These startups have driven YC’s reputation as a top accelerator.[14]

Hacker News

Y Combinator runs Hacker News, a social news site launched by Paul Graham in 2007, focusing on computer science and entrepreneurship. It fosters community discussions with strict moderation for quality.[15]

Impact

YC is considered the world’s leading startup accelerator, having incubated over 90 unicorns. About 45% of YC startups raise Series A funding, compared to the industry’s 33% average.[16] Roughly 4.5% of YC startups since 2010 have reached billion-dollar valuations, with a 5.4% rate from 2010–2015.[17] YC’s mentorship and network significantly boost startup success.[18]

References

  1. ↑ Metz, Cade (2021-12-21). "How Y Combinator Changed the World". WIRED. Retrieved 2025-07-31.
  2. ↑ Kincaid, Jason (2009-01-09). "Y Combinator To Close Cambridge Location, Operate Solely From Silicon Valley". TechCrunch. Retrieved 2025-07-31.
  3. ↑ Ha, Anthony (2009-06-28). "Y Combinator gets a $2M shot in the arm from Sequoia, angels". VentureBeat. Retrieved 2025-07-31.
  4. ↑ Arrington, Michael (2011-01-14). "Start Fund: Yuri Milner, SV Angel Offer EVERY New Y Combinator Startup $150k". TechCrunch. Retrieved 2025-07-31.
  5. ↑ Constine, Josh (2014-02-21). "Sam Altman Taking Over as President of Y Combinator". TechCrunch. Retrieved 2025-07-31.
  6. ↑ "People - Y Combinator". Y Combinator. 2023-03-11. Retrieved 2025-07-31.
  7. ↑ Loizos, Connie (2020-03-16). "Y Combinator Moves Summer Batch to Fully Remote Amid COVID-19 Concerns". TechCrunch. Retrieved 2025-07-31.
  8. ↑ "Y Combinator's New Deal: $500K for Startups". Y Combinator. 2022-01-25. Retrieved 2025-07-31.
  9. ↑ "About Y Combinator". Y Combinator. 2023-01-13. Retrieved 2025-07-31.
  10. ↑ "About Y Combinator". Y Combinator. 2023-01-13. Retrieved 2025-07-31.
  11. ↑ "About Y Combinator". Y Combinator. 2023-01-13. Retrieved 2025-07-31.
  12. ↑ "About Y Combinator". Y Combinator. 2023-01-13. Retrieved 2025-07-31.
  13. ↑ Loizos, Connie (2016-08-03). "Y Combinator's Fellowship Program Now Offers $20K to Early-Stage Startups". TechCrunch. Retrieved 2025-07-31.
  14. ↑ Metz, Cade (2021-12-21). "How Y Combinator Changed the World". WIRED. Retrieved 2025-07-31.
  15. ↑ Graham, Paul (2007-02-01). "Hacker News Launch". Hacker News. Retrieved 2025-07-31.
  16. ↑ "Post by @lennysan". X. 2025-02-12. Retrieved 2025-07-31.
  17. ↑ "Post by @garrytan". X. 2023-06-14. Retrieved 2025-07-31.
  18. ↑ "About Y Combinator". Y Combinator. 2023-01-13. Retrieved 2025-07-31.

External links

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