Investing in newly established companies y can drive Significant odds to investors.
“If you look at the data: 6% of YC companies become unicorn and from this 6% one quarter becomes decacorns,” Kulveer Taggar told TechCrunch. Taggar is a twice YC Alum known for the establishment of Zeus Living, a real estate management start that increased over $ 150 million in funding.
Taggar is so sure of the dynamic continuous return offered by the famous accelerator that established Phosphorus capitalA business business dedicated exclusively to investing in YC companies. Since last year’s start, Phosphorus increased $ 34 million in two chapters.
While Phosphorus is not the only business capital business that focuses on YC Startups – the Pioneer Fund and the Rebel Fund use similar strategies – the company is the only dedicated YC fund led by a solo general partner. And because of Taggar’s long relationship with YC, he also put on YC Garry Tan CEO as an investor in the fund, he says.
Taggar’s relationship with Y Combinator began in 2007, when he, Harj Taggar’s cousin and future founders of Stripe Patrick and John Collison brought their start -up, Auctomatic, through the program. Although Auctomatic was sold just a year later, this experience was the key to forging a strong connection to the top accelerator.
The Y Combinator re -passed in 2011, this time with Zeus Living, a start -up that bought homes to offer furnished accommodation on flexible terms for business and personal trips. Initialized chapter, founded by today’s head of YC Garry Tan, A funding series and LED Zeus Living TAN He joined his Board of Directors.
At its peak, the start was valued at over $ 200 million and had an annual revenue rate of about $ 120 million, according to Taggar.
However, Zeus faced significant principles when interest rates rose earlier this decade and the start was sold to Blueground competitor in late 2023 for non -announced terms.
Taggar started phosphorus just months after Jupiter’s exit. He told TechCrunch that he was particularly excited about the opportunity to invest in new AI newcomers and the Garry Tan leadership for the famous accelerator. “You could see this as a bet on Garry. I think it takes Y Combinator at a new level,” Taggar said.
Unlike many emerging managers, Taggar had a relatively easy time to raise funds. Beyond Tan, he says the other LPS include Zeus investors. “I had a relationship with them and a history, so they knew me, and they knew how hard I was working,” he said.
Others include family offices and a large asset administrator who take a bet on Taggar to a large extent due to its deep connection and long -term bonds to Y Combinator.
“Kulveer is what you could call OG alteration from the first days of YC,” YC’s partner Jared Friedman said. “It’s close to me and to many of the people running now YC.”
The Taggar background as a YC alum and a founder was also part of the phosphorus draw for LPS and a benefit for the founders. “Zeus was a really tough company to run. He has a huge number of battle scars than to do this hard thing in the natural world,” Friedman said. “I hear this from the founders that he has incredible empathy for what they are going through, because he has passed by himself.”
Phosphorus writes checks ranging from $ 100,000 to $ 500,000. The company has already supported more than 200 YC companies, with many increasing funding of Series A, including the Gumloop Flow Automation Platform and AI Meeting Manager Circleback.
