The Start Fund, the consortium of top investors who are backing all Y Combinator companies, has a new partner: General Catalyst. The storied venture firm has already been busy expanding into Silicon Valley from its Boston home in recent years — and it has already gotten into around ten YC companies, including top ones like AirBnB and Stripe.
The Start Fund is a natural extension of that effort. Started last year by DST’s Yuri Milner and SV Angel (and later adding Andreessen Horowitz), it has been providing $ 150,000 convertible notes to every single company that gets accepted into Y Combinator, on top of what the seed-stage venture firm already puts in. This way, of course, these investors can get equity in any of the many YC startups that turn into big businesses, instead of having to battle it out in later rounds with the countless others fighting to get in.