This week, we’re talking about the small terms-of-service change that sent shockwaves across Canadian tech after it was revealed that Y Combinator, a globally prominent US technology accelerator, will no longer directly invest in Canadian-domiciled startups.
“It’s important for the success of Y Combinator to see people investing at a very, very early stage. And if it means, to keep them happy so that they’re investing in YC companies, they will do what it takes.”
The reaction was immediate, and launched 1,000 thought pieces and social posts claiming the change was: a huge blow to Canada, a big nothingburger, politically motivated, or perhaps simply “formalizing what’s inevitable.”
For his part, Y Combinator CEO (and Canadian!) Garry Tan stated, “where you are incorporated increases your access to capital.”
Is that the case? Or is this another instance of America applying “economic force” to undermine Canada?
To help me answer all of these questions, we have John Ruffolo, founder and managing partner of Maverix Private Equity. After writing 1,600 words on the subject, Ruffolo promised to never talk about Y Combinator and Canada again—with the exception of this podcast episode!
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So, what is going on with Y Combinator and Canada? Let’s dig in.
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