y Combinator closes late stage fund: Y Combinator closes late stage investment fund, lays off employees
“YC is rightfully known for its early stage investments. In recent years, we have also invested in the later stages. But late-stage investments turned out to be so different from early-stage investments that we found them to detract from our core mission. So we’re going to reduce the amount of late-stage investments we make.” Harry TanPresident and CEO of YC, wrote in blog post.
Tech publication The Information reported that Anu Hariharan And Ali Ruganiwho ran Continuity Fund YC will leave to start his own fund.
In addition, Tang also revealed on his blog that the closure will affect 17 employees of the firm whose roles will no longer be needed.
“Unfortunately, this means that we will no longer need some roles in the investor team in the later stages. Seventeen of our teammates were injured today. By making this change in strategy, we want to recognize and express our appreciation for their significant contributions,” he said.
Tan clarified in his post that the event will not have a measurable impact on the companies it funds or how they interact with alumni.
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Silicon Valley Banking Crisis
ET reported on March 12 that at least 40 YC-backed Indian startups had deposits between $250,000 and $1 million in SVB.with more than 20 of them having deposits of over $1 million. YC has backed over 200 startups in India, including Razorpay, Zepto and Meesho.
Tan wrote to US regulators, including Secretary of the Treasury Janet Yellen.seeking relief and attention from the collapse of Silicon Valley Bank (SVB), which resulted in hundreds of banking startups’ deposits being frozen in the California lender last week.
Highlighting the importance of the collapse of SVB, he said in a series of tweets that the collapse of SVB was a “disappearing-level event” for startups, given that payroll impediments could lead to “mass layoffs.”
The petition was signed by over 3,500 executives and founders. Among the signatories are almost two dozen startups with a base in India.
YC was an early investor in firms such as Stripe, Airbnb, and others. His portfolio firms work closely with SVB.