A new $34M fund dedicated to YC startups, founded by Taggar, backed by Garry Tan.

Investing in Y Combinator startups can lead to significant returns, with 6% becoming unicorns and a quarter of those becoming decacorns, according to Kulveer Taggar. Taggar, a two-time YC alum, founded Zeus Living, raising over $150 million. He then established Phosphor Capital, a firm dedicated to investing in YC companies, raising $34 million across two funds.

Taggar’s long relationship with Y Combinator began in 2007 with Auctomatic. In 2011, he went through YC again with Zeus Living, which reached a valuation of over $200 million with an annual revenue run rate of $120 million. However, Zeus encountered significant headwinds and was sold to Blueground in late 2023.

Phosphor Capital, led by Taggar, focuses on investing in young AI startups and is backed by YC CEO Garry Tan. Taggar’s ability to raise capital was aided by his established relationships with investors and LPs, including Zeus’ investors, family offices, and a large asset manager.

Phosphor writes checks ranging from $100,000 to $500,000 and has backed over 200 YC companies. Some companies, like Gumloop and Circleback, have gone on to secure Series A funding. Taggar’s background as a YC alum and founder, along with his empathy for founders, has made Phosphor an attractive option for investors and founders alike.

Read more at Yahoo Finance: Y Combinator alum launched a new $34M fund dedicated to YC startups, backed by Garry Tan