Khosla Ventures is partnering with Y Combinator as part of their venture capital program. Khosla will invest around $20,000 to each startup that goes through the seed stage accelerator. Khosla will be replacing Yuri Milner’s VC firm DST in the program.
Milner is now more focused on later stage investments. Other investment companies that participate in the Y Combinator VC program include Andreessen Horowitz, General Catalyst, and Maverick Capital. These VC firms are also expected to hold office hours to help the entrepreneurs. The YC VC Program is a successor to the Y Combinator Start Fund program that was set up with Milner and SV Angel.
Under the Start Fund program, each company received $150,000 that participated in the accelerator. It turns out that $150,000 was more than what the successful startups needed and caused messy disputes with the unsuccessful startups.