Y Combinator

Y Combinator has stopped investing in startups incorporated in Canada, forcing accepted firms to reincorporate abroad, The Logic reported. Updated deal terms now limit eligibility to the United States, Cayman Islands, or Singapore, requiring structural flips for others. Canada disappeared from YC webpages in November 2025 after backing Canadian companies since 2008.

The accelerator invests US$500,000 for seven percent and draws major venture funds to demo day. Alumni include Vidyard, SRTX, and CoLab. None of winter 2026’s 99 companies list Canada headquarters. YC declined comment as applications close February 9, 2026.

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A new graph from Bram Sugarman highlights Canadian-headquartered companies in Y Combinator (YC) by batch, revealing fluctuations in enrollment. During the pandemic, YC’s remote format likely boosted Canadian participation, though the data excludes companies with Canadian founders. When those are counted, the Winter 2024 cohort triples to 12 startups.

YC CEO Garry Tan acknowledged the trend, stating that Canadian startups raising funds and staying in San Francisco post-demo day become unicorns 2.5X more often. A recent YC dinner also revealed many Canadian founders opting to relocate permanently. The question remains: is Canada losing its top startups to Silicon Valley?

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