Y Combinator Technology Startup Accelerator on Monday, January 10 2022 announced a new standard deal. According to the official publication of the company, it will now invest $500,000 whenever a company is accepted into its YC batch program.
The investment will be divided into the current 7% investment of $125,000 and an additional $375,000 which will be invested on the terms of the lowest cap safe or at the terms the company will negotiate with the investors which will be issued between the start of the batch and the next equity round.
Y Combinator reiterated that this deal had been in the talks for years now. The success of YC companies in the last year gave the company the confidence to ahead with the deal this year.
The company stated that the $500,000 investment will enable founders to focus on launching, building, and scaling their company and additionally help reduce the pressure on founders to fundraise and accept less favorable terms.
Moving on to further buttress the positive side of this new investment deal. The managing director at Y combinator, Dalton Cadwell, made mention of how founders of companies can fully utilize the invested funds in a manner that will keep the company in good shape for years, with the condition that they choose to stay lean.
Based on the company’s principles, the goal of this investment is to drive more founders, across ages, races, and nationalities to go into tech. To this end, the company consistently exerts efforts to improve its program and encourage more founders to apply to the program.