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Y Combinator is seeking founders to build businesses in AI financing and digital financial services, with a standard $500,000 investment for companies it accepts. The on-time deadline for its next startup program is Monday, Nov. 2, at 11 p.m. ET.
The invitation is for entrepreneurs seeking money to build a company, not investors looking to buy into a public offering. The funding comes in exchange for company ownership, and applicants must be selected.
<h2 id="what-is-y-combinator">What is Y Combinator?</h2>
Y Combinator is a startup investor that funds young companies and runs a program to help founders build them. It provides capital, advice from a dedicated partner and introductions to other founders and investors.
Founders apply with their company, and YC chooses which applications advance to an interview. Acceptance brings its standard investment and a place in the program, rather than an automatic payment for submitting an idea.
The current program lasts three months and takes place in San Francisco. Near the end, YC introduces founders to investors who may provide more funding.
Participation means building a company and giving up equity, the ownership shares in that business. This application is not a way for readers to invest their own money in YC or buy shares in its startups.
<h2 id="which-businesses-yc-wants-founders-to-build">Which businesses YC wants founders to build</h2>
In its October <a href="https://docs.google.com/document/d/1L067Yh-0EeCF_6URZvdbryqn3ycw_BmO7J9OZXlqIc0/edit?pli=1&amp;tab=t.0" rel="noopener noreferrer nofollow">request</a> for crypto startups, YC asks founders to make it easier to raise money for artificial intelligence using blockchain technology, the shared transaction records underlying cryptocurrencies.
It points to Ethereum's early coin sale as an example of crypto's use in raising money. The request does not announce a YC token sale, an AI investment fund or a product investors can buy.
YC also wants new dollar-linked cryptocurrencies for specific customer groups, reliable stablecoins linked to other currencies and banking-style services for underserved customers. Stablecoins are cryptocurrencies designed to track the value of a currency, such as the U.S. dollar.
Global contractors and international businesses are among the customers it names. The proposed businesses would help those customers receive and use money across borders.
YC asks founders to identify a customer group and a way to reach it, rather than simply issue another cryptocurrency. For banking-style services, its request explicitly says founders will need to manage risk effectively.
Another request covers digital versions of assets such as real estate or securities. YC wants founders to choose assets that could benefit from trading around the clock, global access or use as collateral, the assets a borrower pledges to secure a loan.
Those are proposed businesses, not a guarantee that every asset can legally trade everywhere. YC calls for a trusted version of the underlying asset, rather than treating a digital record alone as enough.
<h2 id="financial-software-for-ai-programs">Financial software for AI programs</h2>
YC is also seeking software that can take financial actions for a user, rather than only answer questions. In its brief, that includes programs that trade assets under human instructions.
The request extends to the connections that let those programs use financial services. These application programming interfaces, or APIs, allow one piece of software to communicate with another.
Some tasks can use a blockchain directly. Others need several services connected, including ways to turn conventional money into crypto and back again.
A company could build the trading software itself or the tools that connect it to financial services. YC is asking for businesses in both areas.
The list is not exhaustive. YC says some of the best ideas are not on it and invites founders to propose others.
<h2 id="what-founders-give-up-for-the-500-000">What founders give up for the $500,000</h2>
YC's standard <a href="https://www.ycombinator.com/deal" rel="noopener noreferrer nofollow">deal</a> invests $500,000 in each accepted company. It is the normal investment, not a new crypto grant or a promise to fund every applicant.
The money comes in two parts. The first $125,000 converts into a fixed 7% ownership stake, while the remaining $375,000 converts into additional ownership on terms tied to later fundraising.
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 How founders apply for Y Combinator funding. Source: TheStreet
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Both investments use agreements for future shares, known as SAFEs. The second agreement has no valuation cap, a limit on the company value used to calculate the ownership the investment buys, and can adopt more favorable terms from qualifying later agreements.
The full $500,000 therefore gives YC more than the initial 7% portion. The exact additional stake depends on future financing.
YC says it charges no program fees and begins the investment process when a company is accepted, rather than waiting for the program to start. Its standard investment is not dependent on the company hitting milestones.
YC illustrates the second investment with a later SAFE carrying a $15 million post-money valuation cap. On those terms, its $375,000 would convert into another 2.5% of the company, in addition to the fixed 7% portion before dilution from the new financing and stock option pool.
That is an example, not a valuation promised to applicants. Later fundraising and shares set aside for employees can reduce the percentage an existing shareholder owns.
<h2 id="how-founders-can-apply">How founders can apply</h2>
Founders can <a href="https://www.ycombinator.com/apply" rel="noopener noreferrer nofollow">apply</a> through YC's online application page. The current Winter 2027 program runs from January through March in San Francisco and takes place in person.
The on-time deadline is Monday, Nov. 2, at 11 p.m. ET. Applicants who submit before the deadline will receive a decision by Dec. 11.
YC says it will still consider applications submitted after the deadline, but cannot promise when it will respond. Founders can also apply now for future programs through its early-decision process.
Promising applications lead to an interview. YC says most interviews will take place by video in November and December, with decisions typically made the same day as the interview.
Founders do not need to have incorporated a company before applying. YC says it can help accepted founders do that, but its investment requires a corporation in the United States, Canada, the Cayman Islands or Singapore.
During the program, each company works with a dedicated YC general partner. Near the end, YC helps companies raise more money by introducing founders to its investor network.
<a href="https://www.thestreet.com/crypto/innovation/kast-is-turning-stablecoins-into-real-banking-without-the-crypto-headaches" rel="noopener noreferrer nofollow">Related: Kast is turning stablecoins into real banking—without the crypto headaches</a>
Disclaimer: This article is for informational purposes only and does not constitute financial advice. Cryptocurrency investments are highly volatile and risky. Always conduct your own research before making any investment decisions.

Y Combinator seeks founders for $500,000 startup funding

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