Yuri Milner Launches Start Fund, Giving Every Y Combinator Company $150,000
Venture capitalists Yuri Milner of DST and Ron Conway of SV Angel have launched a new fund called The Start Fund. The first order of business is to invest $150,000 in every Y Combinator start-up company. The $150,000 investment will be convertible debt with no cap and discount.
The startups can choose whether or not they want the investment as they prepare to exit out of Y Combinator. So far about 39 of the 43 startups in the class signed the paperwork to take the loan. The rest is pending approval from lawyers.
“These aren’t gifts, we’re not a charity. It’s an investment that gives these startups that first critical $150k that gets them to product. We intend to make money on these investments,” stated SV Angel managing partner David Lee. “This is a chance for us to invest in some of the best young entrepreneurs in the world.” Lee and Conway founded SV Angel together.This article was written by Amit Chowdhry. You can follow me at @amitchowdhry or on Google+ at +AmitChowdhry