Exclusive: YC Alum Launches $34M Fund Backed by Garry Tan to Fuel Next-Gen Startups

Investing in Y Combinator (YC) startups has proven to be a goldmine for investors, with 6% of YC companies becoming unicorns, and a quarter of those reaching decacorn status. This compelling data comes from Kulveer Taggar, a two-time YC alum and the founder behind Zeus Living, a property management startup that once boasted a valuation over $200 million.

Taggar's unwavering belief in YC's potential led him to establish Phosphor Capital, a venture firm exclusively investing in YC startups. Since its inception last year, Phosphor has successfully raised $34 million across two funds. What sets Phosphor apart is its unique position as the only dedicated YC fund led by a solo general partner, with YC CEO Garry Tan himself backing the fund.

Taggar's journey with YC began in 2007 with Auctomatic, a startup he co-founded with his cousin Harj Taggar and the Collison brothers, later of Stripe fame. His second stint with YC in 2011 through Zeus Living further cemented his ties with the accelerator, leading to a Series A funding led by Initialized Capital, co-founded by Garry Tan.

Despite Zeus Living's eventual challenges and sale to competitor Blueground, Taggar's resilience and deep-rooted connections within the YC ecosystem have paved the way for Phosphor's success. The fund has already invested in over 200 YC companies, including notable names like Gumloop and Circleback, showcasing Taggar's keen eye for promising startups.

Phosphor's strategy involves writing checks ranging from $100,000 to $500,000, targeting early-stage startups with high growth potential. Taggar's background as a founder and his empathy towards the entrepreneurial journey make Phosphor a sought-after partner for YC startups.