Funding & terms
Y Combinator's side letter is a right to invest, not a stake
Y Combinator's own Pro Rata Side Letter text is an opt-in option to buy into a startup's next priced round, not a guaranteed allocation.
3 min · 3 source records
What kind of company are you financing?
Start with the use of capital and the obligations it creates. Prepare the evidence for a future transaction without making a sale your only plan.
THE WORKING OUTPUT
A financing brief and an orderly, access-controlled evidence trail.
The right structure depends on the company, jurisdiction and agreement. No financing offer, valuation or exit is promised.
Open the decision tools ↗A useful reading order
Funding Fit Before the Pitch
Choose which financing paths fit the company’s capital need and constraints before approaching investors or lenders.
4 min readPrepare for Diligence Without Selling the Company
Maintain decision-useful company records without assuming a sale or exposing unnecessary sensitive data.
4 min read
Go back to the research
Read a primary-source record alongside it.
Funding & terms
Y Combinator's standard deal is two SAFEs, not one number
Y Combinator's own Deal page splits its $500,000 into a 7% capped SAFE and an uncapped MFN SAFE, as stated on 16 September 2026.
3 min · 3 source records
Funding & terms
Techstars discloses $220,000 across two instruments, not one
Techstars' own investment-terms page splits its $220,000 into a $20,000 equity slice and a $200,000 uncapped SAFE, plus a side letter.
3 min · 3 source records