Y Combinator is the start-up seed fund no one knows about

America’s Y Combinator technology start-up seed fund
Photo: Fancycrave, Pexels

Almost everyone is familiar with Silicon Valley, a region of the San Francisco Bay area popular for cutting edge technology and innovation. But not everyone is familiar with the massive seed accelerator Y Combinator, responsible for funding many tech start-ups in the area.

Established in March 2005 by four tech enthusiasts, Y Combinator has funded over two thousand start-ups. Today, Y Combinator is a thriving community with over four thousand followers. The combined value of all Y Combinator’s start-up companies nets a whopping value over $100 billion.

Seed funding, sometimes known as seed capital, is when an investor loans money to a company in exchange for an agreed percentage of that company (equity stake). Seed funding is used to describe money given for the earliest stages of product development.

Overtime, Y Combinator has expanded to offer a lot more than just money. Y Combinator offers services to help collaborate with entrepreneurs. The ultimate goal is to link these entrepreneurs with larger investors and on some occasions, acquirers. Y Combinators philosophy is to focus the creators time and talents on product development.

Once developed, these investments can create jobs. Popular seed funded start-ups include Airbnb or Dropbox.