YC Continuity Fund Was Designed to Compete With Public Market Investors
Justin Kan · 20VC: YC's Justin Kan on The 3 Qualities All Successful Investors Have & Why 'VCs Don't Really Do Any Real Work'? · Aug 1, 2016 · at 11:01
Justin Kan, partner at Y Combinator, responds to host Harry Stebbings about whether YC's $700 million growth fund competes directly with traditional venture capital firms.
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“The continuity fund originally was conceived of as a way to compete with more of the growth stage investors that were coming into the market in the later stage. So that's people who weren't actually classically VCs. I think as you've seen like tech companies, not IPO in the past, you know, six years has been this bull run in tech, but the companies have remained private for the vast majority of them. As a consequence, a lot of people were Traditional public market investors now, you know, in order to get returns have been coming into the private markets, and so I think that, ah, the continuity fund is much more competitive with those investors.”
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