Y Combinator raising $1 billion for new fund
Details, per sources:MORE
- Merger: This is technically for YC's second Continuity fund, the first of which was a $700 million vehicle designed to invest in later-stage rounds of companies incubated by YC. But YC has decided to merge its existing early-stage investment program with its later-stage fund, so the $1 billion would go toward both.
- Inside and out: YC has strayed a bit from its original Continuity mission, in that it's now willing to selectively back companies that didn't participate in its accelerator program (something it originally said it would not do). So far it's only done one such deal, which remains unannounced, but more could come. This puts YC more squarely in competition with traditional VC funds that usually invest in startups after they've completed the accelerator program....