Huffpost Business

Sequoia Capital Invests In Y Combinator's New Angel Fund

Posted: Updated:
Y Combinator, a seed stage venture firm that has invested in a whopping 118 startups since summer 2005, has to date only invested capital provided by its four founders: Paul Graham, Jessica Livingston, Trevor Blackwell and Robert Morris. Sequoia and the angel investors (Ron Conway, Paul Buchheit and Aydin Senkut) aren't investing directly in Y Combinator. Instead, they are putting money into a new entity, managed by Y Combinator, that will make investments in new startups going forward. In other words, Y Combinator won't just be investing their own capital any more, and they have got a larger war chest to expand operations. Investments are small ($5,000 $5,000/founder) in exchange for around 6% of equity, and the startups are typically very early, usually idea stage. 1

Y Combinator announced Monday it has raised a $2 million venture fund with the aid of Sequoia Capital and angel investors. In making the announcement, Y Combinator noted it plans to increase the number of start-ups it funds to 60 a year, up from 40. With the added funding in hand, Y Combinator extended its deadline for start-ups to apply for funding to March 25 4
  1. Y Combinator Gets The Sequoia Capital Seal Of Approval (TechCrunch)
  2. Sequoia Capital Invests $2 Million Into Y-Combinator (Pulse2)
  3. Sequoia Capital Invests In Y Combinator's New Angel Fund (paidContent)
  4. Y Combinator plans to fund more start-ups (cnet)

Read the whole story at Green