Y Combinator to fund start-ups in stablecoins
What's the story
Y Combinator (YC), the renowned start-up accelerator, is letting its portfolio companies receive seed funding in stablecoins. The move comes as part of YC's "standard deal," where it invests $500,000 for a 7% equity stake in accepted start-ups. The new payment method will be available on blockchain platforms like Base, Solana, and Ethereum starting with the upcoming spring batch.
Efficiency
Stablecoin transfers more efficient for founders
YC Partner Nemil Dalal told The Block that stablecoin transfers are often more efficient, especially for founders in emerging markets. The decision to allow seed funding in stablecoins also shows YC's commitment to the blockchain space. Last year, the accelerator partnered with Base and Coinbase Ventures to encourage founders to build more blockchain-related companies.
Resurgence
Move comes as US works toward crypto-friendly regulations
The move comes as interest in blockchain technology is once again on the rise in Silicon Valley. This comes amid US efforts toward more formal, cryptocurrency-friendly regulations for the industry. YC's decision to accept stablecoin payments could further fuel this trend, by encouraging more start-ups to explore and adopt blockchain technology in their operations and business models.