Y Combinator, $500K for 7% plus an MFN SAFE, Winter 2027
For $500,000, Y Combinator takes a fixed 7% of a company and then a second, open-ended share. $125,000 of the cheque converts into the 7%. The other $375,000 goes in on an uncapped MFN SAFE. Y Combinator's own example: at a $15 million post-money cap on later SAFEs, that part becomes 2.5%, so about 9.5% in total at that cap, before later dilution (our sum).
Where applications stand, per the Y Combinator apply page as read on 9 November: the Winter 2027 batch, in person in San Francisco, January to March. The on-time deadline was 2 November at 8pm PT. Y Combinator says it is still accepting late applications but cannot promise when it replies. On-time applicants hear by 11 December. The page gives no exact start date.
- The instruments. A $125,000 post-money SAFE for 7%, a $375,000 uncapped MFN SAFE, and a Y Combinator Agreement with a pro rata right to join later rounds. The MFN SAFE converts on the lowest cap or best terms any SAFE gets between about the start of the batch and the priced round.
- No milestones, no fee. Y Combinator commits on acceptance and does not wait for the batch to start. It says it charges no fees to join.
- Where the company sits. Y Combinator invests in US, Canadian, Cayman and Singapore corporations. A company incorporated elsewhere has to flip to one of the four.
- Early Decision. Students can apply now for a later batch: pick "a batch after Winter 2027". Y Combinator funds them on acceptance and holds the place.
Who pays: Y Combinator itself makes the investment. The pages say nothing about where that money comes from.
The track record, by Y Combinator's own count: its home page shows $1.3 trillion in combined valuation beside 13 named alumni companies. The page does not say how it is calculated. Its examples mix measures, such as a valuation at a 2020 IPO and an acquisition price. The FAQ says on average 40% of funded companies are just an idea, about half of a batch applied more than once, and 7% of recent batches had more than $50,000 a month in revenue.
Not published on the pages we read: the acceptance rate, the size of the Winter 2027 batch and the number of applicants.