Y Combinator Continuity is an investment fund dedicated to supporting founders as they scale their companies. Our primary goal is to support YC alumni companies by investing in their subsequent funding rounds.
Like YC’s early stage partners, the entire YC Continuity team has strong operating experience and interest and takes time to advise YC alumni. We work to create opportunities for founders to continue their personal growth and scale their companies successfully.
How do we invest?
Continuity invests capital in two ways:
Pro-Rata Investing: We exercise YC’s pro rata investing rights in all follow-on priced financing rounds, beginning with a company’s first priced round. At post-money valuations equal to or below $300M, we exercise our rights in all companies where we have a formal pro rata right. For rounds at valuations above $300M post-money, we perform diligence before choosing to exercise our rights.
Growth Investing: We write bigger checks ($15M-$50M) in growth stage financing rounds. We have both led rounds ourselves and participated as co-investors in rounds led by other investors. We do not have any strict valuation parameters, but look for companies with clear business models and customer traction. We do not participate as lead investors in typical Series A or seed stage financings.
Why did YC raise this fund?
The idea came to us from our founders. Many of our alumni have encouraged us to raise a fund so that YC could remain a financing partner as they grew their companies. YC has now funded over 1,200 companies, and many of these companies are now scaling their organizations, operations, and revenue. We hope to be a founder-friendly partner for maturing companies in the same way we have been a founder-friendly early-stage investor.