Y Combinator reverses decision and will invest in Canadian startups again

Y Combinator has restored Canada to its list of accepted countries of incorporation after briefly removing it from its standard deal terms; the earlier change prompted backlash in the Canadian tech community.

Y Combinator has updated its standard deal terms to once again permit investment in Canadian-domiciled companies. The accelerator restored Canada to its list of accepted countries of incorporation following an earlier removal. That earlier change, made sometime after November, prompted criticism because it would have required some Canadian founders to reincorporate outside Canada to participate. Y Combinator CEO Garry Tan posted that YC will invest in US, Canada, Cayman, and Singapore corporations and welcomed Canadian founders to apply. Key points: - Y Combinator has added Canada back to its list of accepted countries of incorporation. - The accelerator's standard deal terms had been revised after November to remove Canada, a change first reported by The Logic. - Removing Canada would have forced some Canadian founders to reincorporate in the US, the Cayman Islands, or Singapore to take part in YC. - The earlier removal prompted backlash from parts of the Canadian tech community and investors. - YC CEO Garry Tan said many top Canadian companies reincorporate in the US for investor access, but YC did not intend to suggest it would stop funding Canadian startups. Summary: The reversal restores the accelerator's previous investment scope and responds to concerns raised in Canada's tech sector. Y Combinator announced it will once again invest in Canadian-domiciled companies and said it welcomes Canadian founders; further operational specifics were not provided.