"Y Combinator CEO Garry Tan initially defended the choice on X. YC-backed Canadian startups that reincorporated in the US had twice the average valuation as those that didn't, he wrote. "There are lots of reasons to build great companies in Canada, and there are lots of great YC and non-YC startups that thrive and are making the Canadian tech scene great," he wrote a few hours later. "Where you are incorporated increases your access to capital. That's it.""
"Tan wrote that "clout farmers" were trying to "make it drama." The online backlash was indeed swift. Canadian investors and founders sounded off, and some accused the choice of being politically motivated. The development also happened at a time when Canada's relationship with the United States has fractured over the last year. Canadian travelers are visiting the US less, while interest in buying domestically produced goods has surged."
Y Combinator briefly removed Canada from its standard list of acceptable countries of incorporation, leaving the US, Singapore, and Cayman. CEO Garry Tan defended the move on X, citing that YC-backed Canadian startups that reincorporated in the US had twice the average valuation and saying where a company is incorporated increases access to capital. Tan also criticized critics as "clout farmers" and minimized drama. The change prompted swift backlash from Canadian investors and founders, with some accusing political motivation. YC reversed the policy and reinstated Canada on the list, stating Canadian founders remain welcome to apply.
Read at Business Insider
Unable to calculate read time
Collection
[
|
...
]