Yuri Milner and partners establish a new venture capital fund YC VC within Y Combinator business incubator. This structure will replace Facility Start Fund that was set up by Milner 2 years ago.
YC VC, as Start Fund, will invest in Y Combinator startups, but will differ from its predecessor in the size of investment in one company: $80K instead of $150K.
The investors of the new fund are Yuri Milner, Andreessen Horowitz and General Catalys. They were joined by investors from Maverick Capital. The contribution of each of these investors in one company will be $20K, Y Combinator will invest the same amount.
Andreessen Horowitz Fund and General Catalys Venture Company were Start Fund’s investors, and SV Angel company of Ron Conway that also invested in the fund was not mentioned in YC VC. According to Paul Graham, a co-founder of Y Combinator, SV Angel is not interested in the new format of partnership.
The new fund says that the reduction in funding will be compensated by active participation of the fund in its projects, as well as by the reduction of tension between the founders of start-ups related to the distribution of received funds.