The 60-second version
- What it is: A 3-month startup accelerator + seed investor.
- Founded: March 2005 by Paul Graham, Jessica Livingston, Robert Morris, Trevor Blackwell.
- Where: Mountain View, California. In-person during the batch.
- Investment: $500K — $125K for 7% post-money SAFE + $375K uncapped MFN SAFE.
- Batches per year: 4 (Winter, Spring, Summer, Fall).
- Acceptance rate: ~1.5–2% of applications.
- Run by: Garry Tan (CEO since 2023), Michael Seibel, Dalton Caldwell, and ~20 partners.
How the program actually works
YC runs four batches a year. Each batch is ~250 companies that move to the Bay Area for three months. The program has three pillars:
- Weekly office hours with a YC partner — focused on growth, fundraising, and team issues.
- Group office hours with 5–6 other founders, run by a partner, every two weeks.
- Tuesday dinners featuring talks from founders like Brian Chesky, Patrick Collison, and Sam Altman.
The batch ends with Demo Day, a private investor event where each company pitches for two minutes to ~1,500 investors.
The deal: $500K for 7%
Since 2022, YC's standard deal is the "$500K standard deal": $125,000 for 7% equity on a post-money SAFE, plus a $375,000 uncapped MFN (Most Favored Nation) SAFE that converts at the terms of your next priced round. Full breakdown in our YC SAFE explainer.
Who gets in
YC funds technical founder teams (often 2 cofounders) building software, AI, hardware, biotech, fintech, and increasingly climate. The bar is evidence: real users, real growth, deep founder–market fit. For full application strategy, see our How to Apply to YC guide and our application writing breakdown.
Notable companies
Airbnb (W09), Stripe (S10), Coinbase (S12), Dropbox (S07), DoorDash (S13), Reddit (S05), Twitch (W07), Instacart (S12), Brex (W17), Rippling (W17), Cruise (W14), Razorpay (W15), PagerDuty (S10). Combined valuation across YC alumni is over $600 billion. Explore them in our Founder Stories library.
Frequently asked questions
What is Y Combinator in simple terms?
Y Combinator is a startup accelerator based in Mountain View, California. It invests $500,000 in early-stage startups in exchange for 7% equity, runs them through a 3-month program, and ends with Demo Day where founders pitch to investors.
Who founded Y Combinator?
Y Combinator was founded in March 2005 by Paul Graham, Jessica Livingston, Robert Morris, and Trevor Blackwell. Paul Graham led the program until 2014, when Sam Altman took over as president. Garry Tan has been CEO since 2023.
How much does YC invest?
YC invests $500,000 in every accepted company: $125,000 for 7% equity on a post-money SAFE, plus a $375,000 uncapped MFN SAFE. The deal has been standard since 2022.
How hard is it to get into Y Combinator?
YC receives ~30,000–50,000 applications per batch and accepts about 1.5–2%. The interview rate is around 3–5% of applicants. Acceptance rates have tightened as application volume scaled.
What companies came from Y Combinator?
Airbnb, Stripe, Coinbase, Dropbox, DoorDash, Reddit, Twitch, Instacart, Brex, Rippling, Cruise, PagerDuty, and Razorpay are among the most well-known. YC has funded over 5,000 companies with combined valuation above $600 billion.
Is Y Combinator worth it?
For most early-stage founders, yes. The brand alone unlocks investor meetings, the network compresses years of learning, and the standard SAFE deal is founder-friendly. The 7% equity cost is significant but generally outweighed by access and survival rate.