Y Combinator No Longer Investing in Canadian Companies
a month ago
- #YC investment
- #startup funding
- #accelerator program
- YC invests $500,000 in accepted companies: $125,000 for 7% equity and $375,000 on an uncapped MFN safe.
- Investment is immediate upon acceptance, with no milestones required.
- YC provides extensive resources and benefits to founders.
- The $375,000 MFN safe converts based on the most favorable terms in subsequent funding rounds.
- YC retains pro rata rights to invest in future financing rounds to maintain ownership.
- YC does not charge fees to companies and avoids 'gotcha' terms.
- Investment structure includes two safes: $125k post-money safe and $375k MFN safe.
- Safe conversion involves simultaneous steps: conversion of instruments, option pool adjustment, and new investment.
- YC supports incorporation in US, Cayman, Singapore, and Canada, assisting with 'flipping' existing foreign entities.
- Original foreign entities can become subsidiaries under a new parent company in a supported jurisdiction.