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 dilution lands around ~8.9%.
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
FAQ
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.
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.