Article · 6 min read

The Y Combinator Standard Deal

Y Combinator Free Beginner

This is the actual math you are trading against, straight from the source: $125K for a fixed 7%, plus a $375K uncapped MFN SAFE that converts at your next round's lowest cap. Read it before you romanticize the check. On a $15M cap that SAFE alone is another 2.5%, so YC ends up owning roughly 10% of your company for $500K. Indian founders should also note the fine print: YC only invests into US, Canada, Cayman, or Singapore entities, so an Indian company must flip its parent offshore to take the deal.

  • The real cost is about 10% (7% fixed plus the MFN SAFE), not the 7% headline.
  • Terms are identical and non-negotiable for everyone, India included, with no fees and no milestones.
  • You must reincorporate under a US, Canada, Cayman, or Singapore parent to take the money.
Open on ycombinator.com ↗

It answers 3 questions

  1. Should I go through an accelerator like YC or an Indian program to raise, and is it worth the equity?
  2. Which incubator or accelerator should I join purely to unlock grant money, and what do they take in return?
  3. Should I raise money from an accelerator like Y Combinator or an Indian program, and is the equity worth it?

Read with it

  1. This is the honest breakdown of what the equity actually buys, and it lands exactly where we do: you are paying for the... Value Add VC Article · 10 min read What Does Y Combinator Actually Give You: The Real Value Beyond the $500K Check Value Add VC
  2. This is the clean head-to-head for the exact choice an Indian founder faces: Surge or YC. It lays out the tradeoff we care... Ellenox Article · 12 min read Surge (Peak XV) vs Y Combinator: A Guide for Founders Ellenox
  3. When you are deciding between a global program and staying close to your Indian market, this lays the actual terms side by side... Ellenox Article · 15 min read India Startup Accelerators 2026: 26 Programs Compared Ellenox
  4. This is the honest counterweight to YC's own pitch: the hard outcome data on what YC's India bet actually produced and why... Asia Tech Review Article · 8 min read Y Combinator reaps big rewards in India but its future in Asia is long over Jon Russell
  5. The clearest single-page explainer of the SISFS mechanics that trip founders up: you never apply to DPIIT directly, you apply... Startup Grants India Article · 12 min read Startup India Seed Fund Scheme (SISFS): Programs, Cohorts & Eligibility Startup Grants India
  6. The equity math lands differently in India, and this piece shows why. Because Indian startups raise at lower valuations than US... Inc42 Article · 8 min read YC's 500K standard deal: what it means for Indian founders Inc42 Staff
eChai Partner Brands The partnership →