Y Combinator has revised its standard deal terms to exclude Canada as a permitted site of investment, implying that Canadian startups aspiring to join will have to incorporate elsewhere.
This is a bit of a nothing burger because the vast majority of startups they invest in (and any other US-based VC fund for that matter) is intensely pressuring companies towards structuring as an LLC based in Delaware/Cayman Islands. I guess instead of forcing companies to restructure, they want companies to start off with the structure before coming to them, which ends in the same place.
If a founder is for some reason insisting on basing in Canada, this founder shouldn’t be looking at YC in the first place since the cash and expectations and market will be all US focused.
This is a bit of a nothing burger because the vast majority of startups they invest in (and any other US-based VC fund for that matter) is intensely pressuring companies towards structuring as an LLC based in Delaware/Cayman Islands. I guess instead of forcing companies to restructure, they want companies to start off with the structure before coming to them, which ends in the same place.
If a founder is for some reason insisting on basing in Canada, this founder shouldn’t be looking at YC in the first place since the cash and expectations and market will be all US focused.