Y Combinator reinstates Canada as accepted country for startup incorporation
ByAyaan Zaveri•Technology
Y Combinator reinstates Canada as accepted country for startup incorporation
- Y Combinator reversed its decision to exclude Canada from its accepted countries for incorporation, effective January 26, 2026, allowing Canadian startups to apply for funding and mentorship programs ca.finance.yahoo.com+1.
- The reversal was driven by extensive feedback from the Canadian entrepreneurial ecosystem and a recognition of Canadian startups' potential in the global market ncfacanada.org+1.
- Initial exclusion was based on data showing many high-performing Canadian companies reincorporated in the US to access better capital, with only 32.4% of high-potential Canadian startups headquartered in Canada ycombinator.com+1.
- The community backlash from Canadian founders and investors criticizing YC’s original decision played a key role in its reversal, emphasizing the high caliber of Canadian entrepreneurial talent ycombinator.com+1.
- The reinstatement opens new opportunities for Canadian founders to access YC’s global network, mentorship, and funding, fostering a more vibrant startup ecosystem in Canada betakit.com+1.
- Despite the temporary exclusion, YC has historically invested in dozens of Canadian startups annually and maintains a strong alumni network, underscoring its ongoing commitment to Canada ca.finance.yahoo.com+1.
- YC’s standard early-stage investment provides $500,000 per startup, including $125,000 for 7% equity and $375,000 on an uncapped SAFE ncfacanada.org+1.
