In a groundbreaking move for the startup ecosystem, Y Combinator, the renowned startup accelerator, has announced the launch of a new fund aimed at supporting early-stage companies, with a significant focus on crypto and blockchain innovations. This development, reported by Bitcoin World, signals a renewed commitment to fostering cutting-edge technology in the rapidly evolving digital finance sector.
The new fund, unveiled in 2025, comes at a time when the cryptocurrency market is witnessing unprecedented growth and mainstream adoption. Y Combinator aims to capitalize on this trend by providing seed funding and mentorship to startups that show promise in transforming the Web3 landscape. This initiative builds on their history of backing over 5,000 companies with a combined valuation of $600 billion.
According to sources, the fund will prioritize startups working on decentralized finance (DeFi), non-fungible tokens (NFTs), and blockchain infrastructure. This aligns with Y Combinator’s previous support for crypto startups, as seen in their W22 batch, which included over 25 crypto-focused companies.
Phosphor Capital, a recently launched $34 million fund by Y Combinator alum Kulveer Taggar, also complements this effort by focusing on YC startups. Backed by notable figures like Garry Tan, it underscores the accelerator’s influence in shaping the future of tech and finance.
This strategic move is expected to attract a new wave of innovators to Y Combinator’s program, which hosts four batches annually. Startups accepted into the program will benefit from financial backing, expert guidance, and access to a vast network of investors and industry leaders.
As the crypto revolution continues to unfold, Y Combinator’s latest fund positions it as a key player in driving technological advancements. Industry experts predict that this initiative will further solidify the accelerator’s reputation as a launchpad for the next generation of tech pioneers.
Alfred Lee
