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- YC Reverses Canada Policy: Survey Results from Canadian YC Founders & What’s Next
YC Reverses Canada Policy: Survey Results from Canadian YC Founders & What’s Next
The last two weeks have been a ride.
On January 26, YC announced a policy change that initially excluded Canada from the list of countries where founders could incorporate. Cue panic, confusion, and a lot of “what does this mean for Canadian founders?” conversations.
Then, 10 days later, YC reversed course and added Canada back to their list of accepted countries of incorporation.
We had “Together YC” and the X26 application feedback session scheduled long before the policy news dropped. We've been bringing the Toronto YC community together for years - spring and holiday socials, application feedbacks - because Canadian founders do need to think bigger than Canada: either serving US/global markets, or bringing world-class experiences to our own market. Supporting Canadian founders on the global stage matters.
When the policy announcement hit, we didn't scramble. We added the survey to understand what was actually happening on the ground, reached out to 390 Canadian YC founders, and got 48 detailed responses. 100% of our survey respondents were Canadian citizens.
At the same time, we were in direct contact with YC, sharing founder feedback and making sure the Canadian perspective was clearly represented.
Key survey findings:
Even though 91% of Canadian founders incorporated in Canada before YC, 75% opened US entities later anyway.
Since many founders open US entities anyway, only 54% strongly opposed the new policy, with another 31% neutral.
Canadians still come home after YC: 90% lived in Canada before YC, and 77% are currently back living in Canada.
54% felt the policy change wouldn’t affect whether Canadians apply to YC, but 40% believe it would dissuade or strongly dissuade applicants. Only 6% thought it would help.
Most common advice to Canadian founders: “Don’t be discouraged. You should still apply to YC.”
Most common suggestion to increase Canadian YC applicants: “Do more events in Canada.”
Most common feedback on the policy rollout: “The communication and timing were terrible, so we now need to work extra hard to make sure everyone understands the updated guidance.”
What This Means:
The data tells a clear story: this was about entity structure, not founder nationality. 75% of Canadian YC founders were always going to open US entities anyway to access capital and scale. The concern wasn’t about whether the door is open and it's making sure everyone knows it.
Here’s what fellow YC alumni had to say to Canadian founders:
“Apply. Apply earlier than you think. Apply if you have nothing. Just apply.” - Founder (W24)
“Complete the application form as a cope-free self-reflection of your business model, but focus all of your efforts on getting customers and growth. Done well, investment should come to you, not the other way around.” - Founder (W22)
“YC hands down is the biggest force multiplier for founders on the planet. The partners there are on your side and care about your success. This is not always the case with investors.” - Founder (S16, exit)
Good news: YC heard the feedback and reversed the policy. They will continue investing in Canadian entities as before.
What’s next: The door is open and more Canadian founders will apply to YC. There’s still work to do and we’re going to keep doing it.
Application sessions: We’ll keep running live feedback sessions to help Canadian founders apply to YC. S26, F26, and W27 sessions are already scheduled for Toronto and will expand to Vancouver and Montreal.
For Canadian Founders:
Did you apply before the February 9 Spring (X26) deadline? Let us know; we're tracking how many Canadians went ahead despite the confusion.
Planning to apply to the next batch? Tell us. We'll make sure you get the support you need.
Need interview prep? If you get to the interview stage, reach out and we'll match you with YC alumni who can help you prepare.
Got in? Congratulations! Make sure you tell us so we can celebrate and support you.
Bottom line: If you're building something ambitious, don't let anything stop you. Focus on building and thinking bigger. Canadian founders need to think beyond Canada - either serve US/global markets, or bring world-class experiences to our own market.
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