YC Startups to Receive Investment in Stablecoin
Y Combinator (YC) will now offer startups accepted into its program the option to receive seed funding in stablecoins, according to Nemil Dalal, a crypto partner at YC. The change, beginning with the upcoming spring batch, aims to streamline transactions, particularly for founders in emerging markets.
YC's standard deal involves a $500,000 investment in exchange for 7% of the startup's equity. This deal will now extend to the blockchain, specifically Base, Solana, and Ethereum. Dalal told The Block that stablecoin transfers are often more effective, especially for founders working in emerging markets.
The move signals YC's increased commitment to blockchain technology. Last fall, YC partnered with Base and Coinbase Ventures to encourage founders to build more blockchain-related companies. Interest in blockchain tech is reportedly on the rise again in Silicon Valley as the U.S. has taken steps to regulate the industry.
In other news from the tech world, Varaha, an India-based climate tech startup, secured $20 million in funding to expand carbon removal projects in the Global South. The investment is the first part of a planned $45 million Series B round led by WestBridge Capital, with participation from existing investors like RTP Global and Omnivore, according to TechCrunch. Founded in 2022, Varaha has raised approximately $33 million in equity to date, along with $35 million in project financing and $500,000 in grants, as it develops carbon removal projects across Asia and Africa. India has become an increasingly important hub for carbon removal projects, offering lower operating costs and a deep agricultural supply.
Meanwhile, the tech community in Minneapolis is grappling with the impact of escalated immigration enforcement. Eight Minneapolis-based founders and investors told TechCrunch that they have put much of their work on hold to focus on supporting their communities. Scott Burns, an investor in the area, told TechCrunch that people are very fatigued. He said people are going to church more often to help pack food to deliver.
TechCrunch also announced that applications for the 2026 Startup Battlefield 200 competition will open this month. The competition, held at TechCrunch Disrupt in San Francisco, offers early-stage startups visibility, access to investors, and growth opportunities.
In other business news, Netflix co-CEO Ted Sarandos addressed concerns about the potential impact of a merger between Netflix and Warner Bros. Discovery (WBD). During a Senate hearing, Sarandos suggested that the merger would not necessarily lead to higher prices for consumers. Sarandos was speaking at a hearing held by the US Senate Judiciary Committees Subcommittee on Antitrust, Competition Policy, and Consumer Rights, Examining the Competitive Impact of the Proposed Netflix-Warner Brothers Transaction. Sarandos aimed to convince the subcommittee that the merger would have an opposite effect.
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