If Y Combinator Did A Growth Fund, It Would Be Very, Very Late-Stage

TechCrunch

For years, Y Combinator has shied away from doing any kind of follow-on funding. That’s out of concern that this would signal risk and ward VCs away from supporting startups that don’t get this seal of approval.

However, under the firm’s new leadership with Sam Altman at the helm, it’s possible that Y Combinator will consider doing growth-stage investments, according to sources familiar with the firm’s plans. Both YC and Altman declined to comment on this story.

First off, the plans are very much “in flux,” a source tells us. The firm has discussed the possibility of growth-stage funding with external parties, but this is not at all finalized.

Second, it would definitely not involve any kind of Series A or B investments because of the signaling risk problem (e.g. companies that don’t get follow-on funding would have a much harder time raising funds from other investors).

A potential Y…

View original post 302 more words

Advertisements
This entry was posted in Brian By Experience. Bookmark the permalink.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s