Y Combinator alum launched a new $34M fund dedicated to YC startups, backed by Garry Tan

Investing in Y combinaStorstups can lead to Significant return To investors.

“If you look at the data: 6% of the YC companies become unicorns, and of those 6% a quarter becomes decacorns,” Taggar told WAN. Taggar is a double YC alum that is best known for the establishment of Zeus Living, a startup of real estate that has collected more than $ 150 million in financing.

Taggar is so confident in the continuous return potential of the famous accelerator that he has founded Phosoric capitalA Venture company that is exclusively devoted to investing in YC companies. Since the launch last year, Phosphor has collected $ 34 million in capital in two funds.

Although phosphorus is not the only venture capital company that is aimed at YC startups -Pioneer Fund and Rebel Fund Use comparable 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 arrested YC CEO Garry Tan as an investor in the fund, he says.

Taggar’s relationship with Y Combinator started in 2007 when he, his cousin Harj Taggar and future line founders Patrick and John Collison brought their startup, Auctomatic, through the program. Although Auctomatic was sold only a year later, that experience was the key to forging a strong bond with the top accelerator.

He went through Y Combinator again in 2011, this time with Zeus Living, a startup that bought houses to offer furnished accommodations with flexible conditions for business and personal travel. Initialized capital, co-founded by the current YC-Chef Garry Tan, led the Serie A-financing and Tan van Zeus Living’s Series A-series Become a member of the board.

At its peak, the startup was valued at more than $ 200 million and, according to Taggar, had an annual turnover Run rate of around $ 120 million.

However, Zeus came across considerable headwind when the interest rates rose earlier this decade and the startup at the end of 2023 to competitor Blueground was sold for unknown conditions.

Taggar only launched phosphorus for a few months after leaving Zeus. He told WAN that he was mainly enthusiastic about the possibility of investing in young AI startups and by Garry Tan’s leadership of the prestigious accelerator. “You could regard this as a bet on Garry. I think he will bring your combinator to new levels,” Taggar said.

Unlike many emerging managers, Taggar had a relatively easy time on attracting capital. Beyond Tan he says that his other LPS includes Zeus’ investors. “I had a relationship with them and a track record, so they knew me and they knew how hard I work,” he said.

Others include family agencies and a large asset manager who largely bet on Taggar because of his deep connection and long -term ties with Y Combinator.

“Kulveer is what you could call an OG -Aluin from the early days of YC,” said YC partner Jared Friedman. “He is close to me and for many of the people who now run YC.”

The background of Taggar as a YC -Aluin and a founder was also part of the draw to phosphorus for LPS and an advantage for founders. “Zeus was a very difficult company to run. He has a huge number of battle scars by doing this difficult thing in the physical world,” said Friedman. “I hear this from the founders that he has incredible empathy for what they are going through because he went through it himself.”

Phosphor writes checks ranging from $ 100,000 to $ 500,000. The company has already supported more than 200 YC companies, with various series A financing set up, including Workflow Automation Platform Gumloop and AI Meeting Manager Circack.