[dang]

I haven't talked to anyone at YC about this, have no inside information, and can't read the article*, but I imagine this is some technical change about where startups are incorporated. I'm sure applications from Canadian founders are as welcome as ever and there will be no change on the level of which applications get funded.

(* edit: I originally posted this in https://news.ycombinator.com/item?id=46772809 but have since merged the thread hither)

[Sanzig]

Seems like a very bizarre move, considering Canadian-domiciled corporations have access to very generous financial incentives (SR&ED) at both federal and provincial levels.

Can't help but think this is a move meant to satisfy the US admin.

[dang]

Again, I have no inside info, but I'm pretty sure it's got nothing to do with that.

Most Canadian YC founders incorporate their startups in the US (sctb and I did that, way back when), just like other international founders do and of course U.S. founders do, so the number of companies being affected by this change must be very small—small enough that it would be of little interest to the US govt.

Most probably the change is because the number was too small to justify all the paperwork, legal hoops to jump through, compliance tracking, etc., that inevitably come with cross-border investments. The startups that YC funds are almost always so early-stage that it ends up being easier for everyone if the founders just incorporate in the US. (It would be like a software team saying "why are we putting all this extra effort into supporting platform X when we only have 3 users on platform X and they can all easily switch to platform Y".)

But please understand that I'm just guessing here. The reason I'm posting at all is that I'd hate for any Canadian founders (or potential founders) to read a misleading headline and say "welp, I guess YC doesn't want us then". That is certainly not the case!