Y Combinator, the successful incubator firm started by Paul Graham has raised $8.25 million in funding from Sequoia Capital, Ron Conway, Paul Buchheit, Aydin Senkut, XG Ventures, and Geoff Ralston. Last year Y Combinator raised $2 million. Y Combinator plans to increase the number of companies that they provide start-up funding to. Since starting in summer 2005, Y Combinator has invested in about 207 startups. [TechCrunch]

Paul Graham has made the VCs open their wallets once again.  Y-Combinator has raised $2 million from Sequoia Capital and several other angel investors.  Up until now, only Paul Graham, Robert Morris, Jessica Livingston, and Trevor Blackwell were the sole investors in Y-Combinator companies.

Through this round of funding, Y-Combinator will open a new investment arm.  Y-Combinator will also be able to increase the number of companies that they invest in ever year.  They wil go from about 40 companies per year to 60.  Y-Combinator invests about $15,000 per startup.  Before Y-Combinator invested about $5,000 for 6% equity in the company and provided startups with office space and other resources.

Some of the companies to come out of Y-Combinator include Snipd, heysan!, Weebly, Addmired, Justin.TV, Tipjoy, Songkick, Disqus, Dropbox, Anywhere.FM, Loopt, Scribd, Xobni, Reddit, and Omnisio.

Greg McAdoo of Sequoia led the investment.  Some of the angels that joined in the investment include Ron Conway, Paul Buchheit, and Aydin Senkut.

[via VentureBeat]