Early-stage venture firm Y-Combinator is getting a boost of money from Sequoia Capital and a few angel investors. In these rather tough economic times, stories like this are quite welcome.
Y-Combinator estimates that with the $2 million raised, it will be able to increase the number of startups it seeds from 40 to 60 per year. Typically, Y-Comb puts in $5,000 plus an added $5,000 for each founder in exchange for between 2% and 10% in equity, with the median being 6%. This is how Reddit got its start, along with Disqus and Dropbox.