Silicon Valley’s most prestigious startup accelerator, Y Combinator (YC), is making a significant shift to its operations, with the launch of a year-round program designed to expand access and increase the rate of founder participation. As of 2025, the famed accelerator, which has birthed tech giants like Airbnb and Stripe, will double its cohorts from two to four per year, enabling continuous application cycles for aspiring entrepreneurs.
In an industry where timing can often be everything, YC’s expansion will allow startups to enter the program without waiting for long application windows. This strategic move, spearheaded by YC’s President Garry Tan, promises to offer more flexibility for founders and streamline the accelerator’s resources to meet a growing demand from the global startup ecosystem. By increasing the frequency of its cohorts, Y Combinator is not just adjusting its internal operations but also sending a signal to the startup world: the doors to Silicon Valley are now open wider, for longer.
A New Structure for a Changing Landscape
Under the new schedule, YC will introduce spring and fall cohorts, in addition to its traditional winter and summer sessions. This means that starting in 2025, the accelerator will be actively training, mentoring, and preparing startups almost continuously throughout the year. Each cohort will still follow YC’s 11-week program, culminating in an investor-focused “Demo Day,” where startup founders pitch their ventures to some of the most influential venture capitalists in the world.
In a conversation with the media, Garry Tan emphasized that the new schedule was designed with founders in mind. “The great thing for everyone is we will be more responsive to founders and fund them right when they start,” Tan said. He also noted that the expansion would result in “4X in-person Demo Days,” which he believes will benefit both founders and investors by creating more time and space for meaningful interactions. Each cohort will be smaller, around 100 to 125 startups per session — half the size of recent batches, bringing the total number of startups to around 500 annually.
This shift comes after criticism in recent years that YC’s growing cohort sizes — reaching upwards of 400 startups in some batches — were diluting the exclusivity of the program. With a more manageable number of startups per cohort, YC hopes to recapture the personal attention and individualized mentorship that made it a transformative force for early-stage startups in its early years.
A Nod to the Past, While Expanding for the Future
Garry Tan, who joined YC in 2022, is a former alum of the program, having gone through it in 2008 while building Posterous, a now-defunct blogging platform. His personal experience as a founder seems to inform his approach to YC’s evolution. He has consistently argued that increasing the number of startups in the program — while maintaining its quality — only enhances the value of the YC network. “The value of any network is the square of its nodes,” Tan has said in previous interviews, underscoring his belief that scaling the program doesn’t dilute its value but, instead, multiplies its benefits for both founders and investors.
However, not all changes under Tan’s leadership have been without controversy. Earlier in 2024, he decided to shut down YC’s $700 million Continuity Fund, which was used to selectively invest in later-stage YC startups. Critics questioned whether YC’s role as an early-stage accelerator was being compromised by forays into late-stage investments. The fund’s closure was seen by some as a course correction, bringing the focus back to YC’s roots — helping nascent companies launch, grow, and secure early funding.
A More Modest Start for Founders
In a notable departure from tradition, YC will no longer be hosting its signature startup retreats at the luxurious Fairmont Sonoma Mission Inn & Spa in California’s wine country. Instead, new cohorts will gather in the more subdued surroundings of YC’s San Francisco office for their orientation. This shift reflects Tan’s view that a simpler environment fosters a better atmosphere for learning and collaboration.
Though the retreat’s location may have changed, the essence of YC’s offering remains the same. Every startup that enters the program receives a $500,000 investment: $125,000 for a 7% equity stake and $375,000 on more flexible terms to be negotiated in the company’s next funding round.
More Demo Days, Less Exclusivity?
While YC’s expansion brings many positives, it may also have some unintended consequences. With four Demo Days each year instead of two, there’s a risk that these once highly-anticipated events could lose some of their mystique. More frequent opportunities for investors to meet startups could dilute the intensity of the process, which has historically served as a critical moment for companies to make their mark.
Nevertheless, the increased number of cohorts and Demo Days means that founders will receive more individualized attention, which many argue is a net positive for both entrepreneurs and investors alike. Startups now have a greater chance of being noticed and funded without being drowned out by the noise of larger cohorts.
The New Normal for YC
Y Combinator’s expansion is a clear reflection of the accelerator’s ambition to grow alongside the increasingly global startup landscape. As markets in Africa, Asia, and Latin America continue to produce more startups seeking the Silicon Valley stamp of approval, YC’s year-round operations offer an opportunity for more diverse founders to gain entry to one of the world’s most prestigious programs.
By adapting to the changing needs of the startup ecosystem, Y Combinator aims to retain its edge as the leading startup accelerator, while providing entrepreneurs worldwide with a chance to build the next Stripe, Airbnb, or Reddit. The message from YC is clear: the future is open, and applications are welcome year-round.