Y Combinator Reinstates Canada as Accepted Incorporation Country

Startup accelerator Y Combinator has reversed a previous decision and will now invest in companies incorporated in Canada. Effective February 5, 2026, the firm will include Canadian corporations alongside those from the US, Cayman Islands, and Singapore in its investment portfolio.

This marks a shift from Y Combinator's prior stance, which excluded Canadian-incorporated entities. The accelerator previously noted that its top-performing Canadian portfolio companies often reincorporated in the US, likely to gain better access to investor capital during their "Demo Day" presentations.

However, Y Combinator emphasized that the previous policy was not intended to signal a lack of support for Canadian founders or startups. The firm confirmed it continued to invest in dozens of Canadian startups annually and has a large network of Canadian alumni, including notable figures.

The decision aims to provide broader access to funding and support for Canadian entrepreneurs. Y Combinator encourages Canadian founders to apply to its program, reinforcing its commitment to fostering a diverse, global startup ecosystem.