How the $500K splits
Tranche 1
$125,000
7% post-money SAFE
Tranche 2
$375,000
Uncapped MFN SAFE
Dilution math
On the $125K tranche, you give up 7% immediately at a $1.78M post-money valuation. The $375K MFN tranche dilutes you later, at whatever cap your seed round sets. If you raise a seed at $20M post, the $375K converts to roughly 1.9% more — total YC ownership lands around ~8.7%.
Worked example: two founders, batch to seed
| Stage | Founders | YC |
|---|---|---|
| Before YC | 100% | 0% |
| After $125K for 7% | 93% | 7% |
| Seed at $20M post (MFN converts ≈1.9%) | ≈91.3%* | ≈8.7% |
*Before new seed investors and any option pool. Run your own numbers with the YC SAFE calculator or the dilution calculator.
What you actually get for the 7%
- $500K of runway (~6–9 months for most teams)
- Weekly partner office hours
- YC brand on your cap table — every investor takes the meeting
- 5,000+ founder alumni network (Bookface)
- Demo Day exposure to ~1,500 investors
YC deal terms: common questions
What is the YC deal?
Since 2022, Y Combinator invests $500,000 in every accepted company: $125,000 for 7% equity on a post-money SAFE, plus a $375,000 uncapped MFN SAFE that converts at the terms of your next priced round.
How much equity does YC take?
YC takes 7% of your company in exchange for the initial $125,000. The additional $375,000 is on an uncapped MFN SAFE, so it does not dilute you further until your next priced round.
Is the YC deal negotiable?
No. The standard $500K deal is offered to every company in the batch. It is non-negotiable to keep the program fair across hundreds of founders.
How does the $375K MFN SAFE work?
The MFN (Most Favored Nation) SAFE is uncapped and has no discount. It converts at the most favorable terms granted to any investor in your next priced round — typically your seed or Series A.
How much equity does YC take in 2026?
7% for the first $125,000. The other $375,000 has no fixed price, so the extra share you give up depends on your next round. Raise a seed at a $20M post-money cap and it adds roughly 1.9%.
What does MFN mean in the YC deal?
MFN stands for Most Favored Nation. It means YC's $375K gets the best terms (lowest cap, best discount) that you give any SAFE or note investor before your priced round.
What happens to YC's SAFEs if you never raise again?
A SAFE only turns into shares when you raise a priced round, sell the company, or shut down. If the company is sold or wound down, SAFE holders are paid out under the terms in the signed agreement.
Does YC take board seats?
No. YC does not take board seats. Partners advise informally during the 3-month batch and stay accessible afterward through the alumni network.