{"id":32010,"date":"2023-10-20T14:26:40","date_gmt":"2023-10-20T14:26:40","guid":{"rendered":"http:\/\/startupsmart.test\/2023\/10\/20\/y-combinator-has-us700-million-to-fund-accelerator-graduates-startupsmart\/"},"modified":"2023-10-20T14:26:40","modified_gmt":"2023-10-20T14:26:40","slug":"y-combinator-has-us700-million-to-fund-accelerator-graduates-startupsmart","status":"publish","type":"post","link":"https:\/\/www.startupsmart.com.au\/uncategorized\/y-combinator-has-us700-million-to-fund-accelerator-graduates-startupsmart\/","title":{"rendered":"Y Combinator has $US700 million to fund accelerator graduates &#8211; StartupSmart"},"content":{"rendered":"<div class=\"td-post-featured-image\"><img loading=\"lazy\" decoding=\"async\" width=\"445\" height=\"352\" itemprop=\"image\" class=\"entry-thumb\" src=\"\/wp-content\/uploads\/2015\/07\/l_samaltman_445.jpg\" alt=\"\" title=\"l_samaltman_445\"\/><\/div>\n<p>American seed accelerator Y Combinator has a long-standing tradition of hedging its bets and investing in a large amount of very small startups. <\/p>\n<p>\u00a0<\/p>\n<p>It will soon fund its 1000th company, and has produced at least six companies worth over $US1 billion.<\/p>\n<p>\u00a0<\/p>\n<p>But YC president Sam Altman now wants to move into the later-stage funding game, and has a big tool at his disposal: a recently raised $US700 million fund.<\/p>\n<p>\u00a0<\/p>\n<p>Ali Rowghani is coming on board as a full-time partner and advisor for the YC Continuity Fund, which will be providing capital in every funding round of a YC graduate that\u2019s worth less than $US300 million, and also investing in others with discretion, as <a href=\"http:\/\/www.wsj.com\/article_email\/tech-incubator-y-combinator-takes-new-tack-with-venture-capital-fund-1444938590-lMyQjAxMTE1NTEwNTgxMjU2Wj\" target=\"_blank\" rel=\"noopener\">the <i>Wall Street Journal <\/i><\/a>first reported.<\/p>\n<p>\u00a0<\/p>\n<p>It\u2019s a break from YC\u2019s motto of treating all startups as equals, and means it\u2019s now all about picking the next big winner.<\/p>\n<p>\u00a0<\/p>\n<p><a href=\"http:\/\/blog.ycombinator.com\/yc-continuity-fund\" target=\"_blank\" rel=\"noopener\">In a blog post<\/a>, Altman says it\u2019s about supporting a company through its entire life cycle.<\/p>\n<p>\u00a0<\/p>\n<p>\u201cWe believe we generally pick good companies for YC, and we want to be able to continue to support them in future financing,\u201d he says.<\/p>\n<p>\u00a0<\/p>\n<p>\u201cWe look forward to being a very long-term focused investor in a sector where most players are not.\u201d<\/p>\n<p>\u00a0<\/p>\n<p>The fund won\u2019t be pursuing investments outside of the YC portfolio though, so the entire $US700 million will be going towards graduates of the three-month accelerator program.<\/p>\n<p>\u00a0<\/p>\n<p>Altman tells the WSJ that it could change the way in which YC interacts with startups.<\/p>\n<p>\u00a0<\/p>\n<p>\u201cIt may change founders\u2019 willingness to tell us really bad things because they\u2019re treating us as a potential investor,\u201d he says.<\/p>\n<p>\u00a0<\/p>\n<p>But according to Altman, it\u2019s all in-line with YC\u2019s primary aim.<\/p>\n<p>\u00a0<\/p>\n<p>\u201cOur mission at YC is to be the organisation that enables the most innovation in the world,\u201d he says.<\/p>\n<p>\u00a0<\/p>\n<p>\u201cCapital &#8211; especially long-term capital willing to invest outside of the current trends \u2013 is an important ingredient in that mission, and I\u2019m excited we are now able to better support some of our companies.\u201d<\/p>\n<p>\u00a0<\/p>\n<p><i>Want to grow your business with Instagram? <\/i><a href=\"startupschool\/\"><i>StartupSmart School can help<\/i><\/a>.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>American seed accelerator Y Combinator has a long-standing tradition of hedging its bets and investing in a large amount of<\/p>\n","protected":false},"author":2,"featured_media":62653,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"_links":{"self":[{"href":"https:\/\/www.startupsmart.com.au\/wp-json\/wp\/v2\/posts\/32010"}],"collection":[{"href":"https:\/\/www.startupsmart.com.au\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.startupsmart.com.au\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.startupsmart.com.au\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.startupsmart.com.au\/wp-json\/wp\/v2\/comments?post=32010"}],"version-history":[{"count":0,"href":"https:\/\/www.startupsmart.com.au\/wp-json\/wp\/v2\/posts\/32010\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.startupsmart.com.au\/wp-json\/wp\/v2\/media\/62653"}],"wp:attachment":[{"href":"https:\/\/www.startupsmart.com.au\/wp-json\/wp\/v2\/media?parent=32010"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.startupsmart.com.au\/wp-json\/wp\/v2\/categories?post=32010"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.startupsmart.com.au\/wp-json\/wp\/v2\/tags?post=32010"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}