Silicon Valley startup accelerator Y Combinator won’t raise another continuity fund, which backs mature private tech companies, two people familiar with the matter said. The partners who led the fund, Anu Hariharan and Ali Rowghani, plan to leave the firm, the two people said. The pair plan to set up a fund together, one of the people said.
The decision comes during a sharp pullback in venture funding, particularly for late stage companies, in which investors have been reluctant to write big checks for startups after the value of comparable public tech companies have fallen. The move was not connected to the recent implosion of Silicon Valley Bank, one of the people said. Instead, Y Combinator wants to focus on its core accelerator, which backs early stage companies, the people said.