Neither is the UK, Germany, Spain, or India, all places with with YC companies in them. None of those locales have ever been in the standard YC deal terms.
What founders in Europe (say, in the Netherland, where YC invested in Servo7 in the W26 batch) do to accept funding from YC is a "flipped structure": they create a new Delaware Corporation, which then acquires the original company and runs it as a subsidiary. The founders retain the same ownership of the new DE company as they would have had they been in the US. Literally nothing else changes about the operation of the company.
This structure is so standard that Canadian YC companies already tended to do it. You've got Dan in this thread talking about how he and Scott did it with Skysheets back in the mid-aughts. Whatever else YC is OK with, future priced-round investors want companies incorporated in the US.
I'm sorry, but you were wrong; your analysis of what this change meant was based on a wildly false premise. The prospects of founders in Canada have not changed; the only thing that's changed is how the paperwork is managed if they are invited to a batch and accept.
tptacek|1 month ago
What founders in Europe (say, in the Netherland, where YC invested in Servo7 in the W26 batch) do to accept funding from YC is a "flipped structure": they create a new Delaware Corporation, which then acquires the original company and runs it as a subsidiary. The founders retain the same ownership of the new DE company as they would have had they been in the US. Literally nothing else changes about the operation of the company.
This structure is so standard that Canadian YC companies already tended to do it. You've got Dan in this thread talking about how he and Scott did it with Skysheets back in the mid-aughts. Whatever else YC is OK with, future priced-round investors want companies incorporated in the US.
I'm sorry, but you were wrong; your analysis of what this change meant was based on a wildly false premise. The prospects of founders in Canada have not changed; the only thing that's changed is how the paperwork is managed if they are invited to a batch and accept.