Silicon Valley shifts AI funding to crypto using an Ethereum ICO blueprint

Y Combinator wants to fund crypto startups that make AI fundraising easier, expand stablecoin banking, and build financial tools for agents, according to its October request for founders. Visiting partner Nemil Dalal shared the call on Oct. 28, saying YC wanted to fund more crypto companies solving financial needs.

The AI capital-raising request connects AI businesses' financing needs with crypto's fundraising history. YC describes investment in AI as one of the largest capital-raising events in human history and points to Ethereum's initial coin offering as a precedent for blockchain fundraising.

Stablecoin expansion

YC wants dollar stablecoin products that reach new customer or merchant groups, stablecoins in additional currencies, and neobanks serving people or businesses that existing providers underserve. Global contractors and international businesses are examples of banking services.

The document also points to gaming as a possible customer segment for dollar stablecoins, pairing the choice of user with the need for a distribution strategy. Distribution is an explicit part of the dollar-stablecoin request.

Trading and agents

YC asks founders to build trading applications and infrastructure for agents, expecting these software actors to become active financial participants and prolific traders. The API category focuses on financial connections designed specifically for agents.

YC argues that institutional financial needs drove crypto uptake over the past year, citing oil hedging and faster cross-border movement of enterprise money. For founders responding now, YC's application page lists the Winter 2027 batch as running from January through March in San Francisco.