Y Combinator Raises $2 Million, Will Fund More Start-ups

Authored by Mark Hefflinger on March 17, 2009 - 7:53am.

Mountain View, Calif. - Y Combinator, a provider of seed funding for start-up companies, announced on Tuesday that it has raised $2 million in new funding from Sequoia Capital and angel investors, and will increase the number of companies it funds annually from 40 to 60.

Mountain View, Calif.-based Y Combinator makes small investments of usually no more than $20,000 in early-stage companies -- mainly Web-based application developers -- and in return usually receives a 2-10% stake in the company.

In addition to financing, Y Combinator also offers hands-on advice to the companies it funds in a range of areas.

Past Y Combinator-funded start-ups include Reddit, Loopt, Scribd, Justin.TV and Anywhere.FM.

The firm said that applications for its current funding cycle must be submitted by March 25.

Related Links:
http://ycombinator.com/party.html