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.