---
title: "Y Combinator is Helping People Invest in Startups Using Blockchain"
description: "Y Combinator wants to utilize blockchain and cryptocurrency to offer wider access for ICOs, in an effort to \"democratize\" the process."
date: "2017-09-21"
modified: "2017-09-21"
authors:
  - name: "Brad Jones"
    link: "https://futurism.com/authors/bradj"
url: "https://futurism.com/y-combinator-is-helping-people-invest-in-startups-using-blockchain"
categories:
  - "Blockchain"
  - "Future Society"
tags:
  - "blockchain"
  - "cryptocurrency"
  - "initial coin offering"
  - "y combinator"
---

# Y Combinator is Helping People Invest in Startups Using Blockchain

![cryptocurrency blockchain y combinator initial coin offering](<https://futurism.com/wp-content/uploads/2017/09/GettyImages-828826868.jpg>)
*\<em\>Image: \<a href="http://www.gettyimages.ca/license/828826868" target="\_blank"\>Getty Images\</a\>\</em\>*

## Smart Investment

Y Combinator wants to give people another way to invest in the startups it works with, utilizing the blockchain and cryptocurrency to offer wider access. Sam Altman, the company's president, expressed a desire to "democratize" the process [speaking at the TechCrunch Disrupt conference](<https://techcrunch.com/2017/09/20/yc-wants-to-let-people-invest-in-its-startups-through-the-blockchain/>).

It's thought that Y Combinator is currently investigating how cryptocurrency might be used to broaden the investment pool. There are various legal factors that need to be taken into consideration before such a system can be put in place.

https://www.youtube.com/watch?v=cMhYFnNpdlc

The idea of using these platforms for investments is broadly similar to the initial coin offerings (ICOs) that are often used to [launch a new cryptocurrency](<https://futurism.com/initial-coin-offerings-are-now-illegal-in-china>). However, Altman had some pointed remarks about the nature of ICOs in their current form.

“Do I think ICOs are silly, bordering on scams? Yes, they are,” he argued. “But, there are a few that are important, and the blockchain is more important than not…ICOs need to be regulated.”

## Crypto Crowdfunding

ICOs have come under scrutiny in recent weeks. China just [enforced a ban on the practice](<https://futurism.com/initial-coin-offerings-are-now-illegal-in-china>), which caused tremors across the cryptocurrency market, but authorities have since explained that this is a [temporary measure](<https://futurism.com/according-to-chinese-official-chinas-ban-on-initial-coin-offerings-is-only-temporary>) intended to allow for proper regulations to be put in place.

It's not difficult to see why there's some trepidation about the legality of ICOs. It's a largely unregulated form of crowdfunding that's capable of bringing in huge amounts of money — in July, Tezos ran an ICO that accrued [over $230 million in cryptocurrency](<https://futurism.com/tezos-just-finished-the-worlds-largest-ico-hitting-more-than-200-million-worth-of-cryptocoins>).

However, the nature of ICOs demonstrate how cryptocurrency might be used by companies like Y Combinator to create room at the table for people who aren't necessarily high-net-worth investors.

"More of the wealth creation here is not available to most people," said Altman, speaking about Silicon Valley. "And I think that’s very bad in a society with already so much wealth inequality."

*Disclosure: Several members of the Futurism team, including the editors of this piece, are personal investors in a number of cryptocurrency markets. Their personal investment perspectives have no impact on editorial content.*