Latest news with #PhosphorCapital
Forbes
22-07-2025
- Business
- Forbes
YC Alum Kulveer Taggar Launches $34M Fund To Back YC Startups
Kulveer Taggar and YC founders Kulveer Taggar 'He acts before the market, trusts before the metrics, and stays through the hard parts,' says One Chowdhury, Co-founder and CEO of Octolane, a self-driving AI CRM that writes, updates, and moves deals for you. 'That mindset built Silicon Valley—and it's what will define this next era.' Meet Kulveer Taggar, founder of Phosphor Capital, a solo GP venture firm exclusively focused on investing in Y Combinator startups. Since launching in January 2024, Phosphor has raised $34 million across two funds—backed by none other than Garry Tan, President and CEO of Y Combinator. 'It's exciting to see Kulveer reinvest his knowledge and capital back into the Y Combinator ecosystem through Phosphor,' says Garry Tan. 'I've been around the YC ecosystem for a while,' Kulveer Taggar says. British-born and one of the first international founders accepted into Y Combinator, Taggar was among a small handful who navigated the O-1 visa process at the time. He began his entrepreneurial journey with his cousin Harj Taggar and Tom Blomfield—now a partner at YC—and later teamed up with Patrick and John Collison, who would go on to found Stripe. Together, they launched Auctomatic, which was sold a year later. 'It was the fourth batch,' he recalls. 'There were only 13 companies back then. You know, it's not what it is today.' In 2015, Taggar returned to YC with Zeus Living (S11), a startup reimagining corporate housing—making it simple to live well, reliably, safely, comfortably, and even stylishly, wherever and whenever needed. He scaled the company from zero to $450 million in revenue. 'That idea found product–market fit fast, and we scaled quickly. Then the pandemic hit—we ran into speed bumps. But we turned the company profitable and sold it to Blueground in late 2023. It was a good outcome, but not the independent company outcome I wanted.' Taggar has now been part of the YC ecosystem for 18 years. He's lived through every founder extreme—pivot hell, blitzscaling, cofounder turnover, board pressure. Today, he's channeling that experience into Phosphor Capital, aiming to turn founder energy into lasting brilliance. 'He's lived through the entire founder journey—pivots, hard decisions, and successful exits,' says Garry Tan. 'His perspectives are exactly what our founders need.' Why Y Combinator, and Why Now Recently, Y Combinator released data showing the incredible returns for investors who built portfolios of YC startups from 2018 to 2020. The accelerator, which funds hundreds of companies each year through an open online application process, has an acceptance rate of just 1%—lower than nearly any other selective process of its kind. YC has backed 90 companies now valued at $1 billion or more, nearly all at the earliest stages—often just a few founders and an idea. Each year, around 10 to 20 of its graduates reach product–market fit and go on to become unicorns. To date, more than $800 billion in market value has been created by YC startups—and counting. But it's not just about the numbers. 'I've seen brilliance—Patrick and John, obviously, then there was Dropbox, the Airbnb guys,' Taggar explains. He was especially excited when Garry Tan returned to lead Y Combinator. 'I know how hard he works, how driven he is. I knew something special was coming.' Taggar adds that Tan served on his board for five years, and his firm, Initialized Capital, was one of the early investors in Zeus. Taggar had already been investing in YC startups for some time, including through AngelList funds—some of which have since reached unicorn status. He mentioned that he really enjoyed the experience and realized that he was good at it. Phosphor Capital is industry-agnostic, but its focus is on finding founders who work hard and ship fast. The main difference between successful companies and regular ones is the ability to build at hyperspeed—doing your homework and showing results weekly, especially within a three-month YC batch. His approach is systematic. Taggar begins due diligence on companies early in the batch. By the time he meets with founders, he is already well prepared. From Builder to Backer When it comes to turning ideas into reality, Kulveer acts fast. 'I think I sold a company in November, I stayed for one month. It was December, and then in February, I closed the first one and I invested in the Winter '24 batch.' His original Zeus investors were very supportive of his new venture. What particularly drew him to investing was also AI. 'I saw that many new categories were open for disruption—categories that maybe weren't before. The companies that are going to become the next giants are being started today. So I thought, I want to start investing now.' Still, there was some hesitation. Having been a founder for so long, Kulveer wanted to remain a present dad, which led him to pursue a new path. 'When you're a founder, you're all in,' he says. 'I was deeply immersed in proptech. It felt good to go broad and see what's at the forefront of technology now—whether it's AI, deep tech, or other fields.' Today, he is confident that investing suits his personality even better. Comparing the two paths, he clearly sees the difference. 'I think what founders do is magic,' Kulveer says. He emphasizes that founders often underestimate their own hard work while placing investors on a pedestal. 'It's the founders who should be on the pedestal because of all the hard work they do. Investors do take big risks, obviously, but it's a privilege to be part of your journey.' Having been both an experienced founder and investor helps him see the full picture from different angles. One insight Kulveer shares concerns founder–investor meetings. Initially, an investor holds the money and questions why they should provide it. But then the founder says or shows something that completely flips the conversation. Suddenly, the investor feels eager to participate—wanting to invest and secure equity. In that moment, the investor finds themselves pitching why they would be a valuable partner for the founder. This shift is often difficult to explain from the investor's perspective. 'There's something about body language or vibes,' he explains. Decisions often happen subconsciously, and then you justify them afterward. Founders who pay close attention to what piques investor interest or causes confusion can tailor their pitch to maximize impact. Kulveer is not only an experienced founder or investor—he is deeply passionate about helping founders, describing himself as being 'on a mission to make sure founders are shining brightly for the full journey.' And the founders feel it. Filip Kozera, Founder and CEO of Wordware (YC S24), a new natural language programming schema empowering non-technical domain experts to build task-specific AI agents, shares, ' There are a few types of investors: some are harmful; some are neutral—they give money and that's it (which are the good ones); some try to be helpful. But the truly rare ones are those who believe in you so much that you become a greater version of yourself. Kulveer is one of those. He is awesome.' The Meaning for the Industry Phosphor Capital represents a meaningful evolution in venture capital: one where experienced founders are becoming specialized backers who understand the YC journey firsthand. As more capital flows into early-stage startups, the quality of support—especially from investors who've sat in the founder's seat—becomes a competitive edge. A solo GP model is also part of a larger shift in venture capital: a move toward lean, fast-moving firms that focus on sharp thesis-driven investing over large, generalized funds. Taggar's deep integration with YC makes Phosphor uniquely positioned to spot high-potential startups early—before Demo Day hype and valuations spike. For Y Combinator, having alumni like Taggar reinvesting time, experience, and capital into the ecosystem reinforces a powerful flywheel. It closes the loop: founders become funders, who in turn help shape the next generation of breakout companies.
Yahoo
03-07-2025
- Business
- Yahoo
Y Combinator alum launched a new $34M fund dedicated to YC startups, backed by Garry Tan
Investing in Y Combinator startups can lead to significant returns to investors. 'If you look at the data: 6% of YC companies become unicorns, and of that 6% a quarter become decacorns,' Kulveer Taggar told TechCrunch. Taggar is a two-time YC alum best known for founding Zeus Living, a property management startup that raised over $150 million in funding. Taggar is so confident in the continuing return potential offered by the famed accelerator that he established Phosphor Capital, a venture firm dedicated solely to investing in YC companies. Since launching last year, Phosphor has raised $34 million in capital across two funds. While Phosphor isn't the only venture capital firm focused on YC startups—Pioneer Fund and Rebel Fund employ similar strategies—the firm is the only dedicated YC fund led by a solo General Partner. And because of Taggar's long relationship with YC, he also nabbed YC CEO Garry Tan as an investor in the fund, he says. Taggar's relationship with Y Combinator began in 2007 when he, his cousin Harj Taggar, and future Stripe founders Patrick and John Collison, brought their startup, Auctomatic, through the program. Although Auctomatic was sold just a year later, that experience was key to forging a strong connection with the top accelerator. He went through Y Combinator in 2011, this time with Zeus Living, a startup that bought homes to offer furnished accommodations with flexible terms for business and personal travel. Initialized Capital, co-founded by current YC chief Garry Tan, led Zeus Living's Series A funding and joined its board. At its peak, the startup was valued at over $200 million and had an annual revenue run rate of about $120 million, according to Taggar. However, Zeus encountered significant headwinds when interest rates surged earlier this decade and the startup was sold to competitor Blueground in late 2023 for undisclosed terms. Taggar launched Phosphor mere months after leaving Zeus. He told TechCrunch he was particularly excited by the opportunity to invest in young AI startups and by Garry Tan's leadership of the prestigious accelerator. 'You could view this as a bet on Garry. I think he is taking Y Combinator to new levels,' Taggar said. Unlike many emerging managers, Taggar had a relatively easy time raising capital. Beyond Tan, he says his other LPs include Zeus's investors. 'I had a relationship with them and a track record, so they knew me, and they knew how hard I work,' he said. Others include family offices and a large asset manager who are taking a bet on Taggar in large part because of his deep connection and long-standing ties to Y Combinator. 'Kulveer is what you might call an OG alum from the early days of YC,' said YC partner Jared Friedman. 'He's close to me and to many of the folks who now run YC.' Taggar's background as a YC alum and a founder was also a part of the draw to Phosphor for LPs. 'Zeus was a really hard company to run. He has a tremendous number of battle scars from doing this hard thing in the physical world,' Friedman said. 'I hear this from founders that he has incredible empathy for what they are going through, because he went through it all himself.' Phosphor writes checks ranging from $100 million to $500 million. The firm has already backed over 200 YC companies, with several going on to raise Series A funding, including workflow automation platform Gumloop and AI meeting manager Circleback.
TechCrunch
03-07-2025
- Business
- TechCrunch
Y Combinator alum launched a new $34M fund dedicated to YC startups, backed by Garry Tan
Investing in Y Combinator startups can lead to significant returns to investors. 'If you look at the data: 6% of YC companies become unicorns, and of that 6% a quarter become decacorns,' Kulveer Taggar told TechCrunch. Taggar is a two-time YC alum best known for founding Zeus Living, a property management startup that raised over $150 million in funding, Taggar is so confident in the continuing return potential offered by the famed accelerator that he established Phosphor Capital, a venture firm dedicated solely to investing in YC companies. Since launching last year, Phosphor has raised $34 million in capital across two funds. While Phosphor isn't the only venture capital firm focused on YC startups—Pioneer Fund and Rebel Fund employ similar strategies—the firm is the only dedicated YC fund led by a solo General Partner. And because of Taggar's long relationship with YC, he also nabbed YC CEO Garry Tan as an investor in the fund, he says. Taggar's relationship with Y Combinator began in 2007 when he, his cousin Harj Taggar, and future Stripe founders Patrick and John Collison, brought their startup, Auctomatic, through the program. Although Auctomatic was sold just a year later, that experience was key to forging a strong connection with the top accelerator. He went through Y Combinator in 2011, this time with Zeus Living, a startup that bought homes to offer furnished accommodations with flexible terms for business and personal travel. Initialized Capital, co-founded by current YC chief Garry Tan, led Zeus Living's Series A funding and joined its board. At its peak, the startup was valued at over $200 million and had an annual revenue run rate of about $120 million, according to Taggar. Techcrunch event Save $450 on your TechCrunch All Stage pass Build smarter. Scale faster. Connect deeper. Join visionaries from Precursor Ventures, NEA, Index Ventures, Underscore VC, and beyond for a day packed with strategies, workshops, and meaningful connections. Save $450 on your TechCrunch All Stage pass Build smarter. Scale faster. Connect deeper. Join visionaries from Precursor Ventures, NEA, Index Ventures, Underscore VC, and beyond for a day packed with strategies, workshops, and meaningful connections. Boston, MA | REGISTER NOW However, Zeus encountered significant headwinds when interest rates surged earlier this decade and the startup was sold to competitor Blueground in late 2023 for undisclosed terms. Taggar launched Phosphor mere months after leaving Zeus. He told TechCrunch he was particularly excited by the opportunity to invest in young AI startups and by Garry Tan's leadership of the prestigious accelerator. 'You could view this as a bet on Garry. I think he is taking Y Combinator to new levels,' Taggar said. Unlike many emerging managers, Taggar had a relatively easy time raising capital. Beyond Tan, he says his other LPs include Zeus's investors. 'I had a relationship with them and a track record, so they knew me, and they knew how hard I work,' he said. Others include family offices and a large asset manager who are taking a bet on Taggar in large part because of his deep connection and long-standing ties to Y Combinator. 'Kulveer is what you might call an OG alum from the early days of YC,' said YC partner Jared Friedman. 'He's close to me and to many of the folks who now run YC.' Taggar's background as a YC alum and a founder was also a part of the draw to Phosphor for LPs. 'Zeus was a really hard company to run. He has a tremendous number of battle scars from doing this hard thing in the physical world,' Friedman said. 'I hear this from founders that he has incredible empathy for what they are going through, because he went through it all himself.' Phosphor writes checks ranging from $100 million to $500 million. The firm has already backed over 200 YC companies, with several going on to raise Series A funding, including workflow automation platform Gumloop and AI meeting manager Circleback.
Associated Press
02-07-2025
- Business
- Associated Press
Entrepreneur and Angel Investor Kulveer Taggar Launches Phosphor Capital, Focused on Early-Stage Companies That Have Participated in Y Combinator
SAN FRANCISCO, July 02, 2025 (GLOBE NEWSWIRE) -- Well-known entrepreneur and angel investor Kulveer Taggar has launched a new investment firm, Phosphor Capital, focused on investing in early-stage companies that have participated in Y Combinator. To date, Phosphor Capital has raised and invested $34M. Portfolio companies include Reducto, Delve, Circleback and Gumloop. Phosphor Capital limited partners include a well-known, top tier asset manager with over $10B in Assets Under Management (AUM), several family offices, and well-known Bay Area accredited investors. 'Early-stage venture only works when investors move at founder speed,' said Garry Tan, President & CEO of Y Combinator. 'Kulveer proved he can sprint; Phosphor Capital will let more YC teams tap that momentum, and I expect LPs will be thrilled with the outcomes.' Taggar has participated in YC twice as a founder - in 2007 with Auctomatic (co-founded with Harj Taggar, Patrick Collison and John Collison and acquired by Live Current Media) and in 2011 with Zeus Living (acquired by Blueground). He has an eye for talent, and has maintained close relationships with many YC partners from his 18 years as an entrepreneur and investor in the YC community. Taggar founded Phosphor Capital in early 2024 after selling Zeus Living to Blueground. He decided to focus the fund's investments on YC companies to best leverage his network and because he believes CEO Garry Tan is taking YC in exciting new directions. As an angel, Taggar wrote 200+ checks in the last 12 months and received a YC Rating of 'Best' from dozens of partners and founders. Taggar is known for his deep relationships within the YC community, and for all the research he does while investing. He endeavors to personally meet at least half of the founders in each YC batch, and to invest in the top 15-20 percent of companies in each batch. 'Over time, it's been shown that 6.5 percent of YC companies become unicorns,' says Taggar. 'That's one in 15. It's a fertile ecosystem for an investor like me who knows the Y Combinator world well.' Early Phosphor Capital seed companies are now moving on to Series A rounds at far higher valuations. One is Reducto, which just announced a $24.5M Series A. Reducto co-founder and CEO Adit Abraham said, 'We're lucky to have Kulveer on board. He helped us win a key early customer a month after investing, helped re-calibrate our hiring efforts at an important inflection point, and as a former founder, is someone I feel comfortable having truly important conversations with. We feel like we can ask him anything.' 'If you could have one angel, get Kulveer,' said Karun Kaushik, CEO of Delve. 'He's closed pivotal early hires that were on the fence, took hours to talk through difficult situations, and game-planned our fundraising strategy. Communicating with him feels like getting advice from an experienced founder friend, not an investor. Kulveer's always in your corner and fighting for you - even on Sunday night calls. He genuinely cares. I couldn't speak more highly of him.' Phosphor Capital currently has 225 portfolio companies that have raised, in total, $720M. Twenty five of the portfolio companies hit a run rate of $1M in ARR in less than 12 months. 'I've been to every YC demo day since 2007 and have seen the generational companies at their earliest stages,' said Taggar. 'I've also lived every founder extreme: pivot hell, blitzscaling, cofounder turnover, board pressure. I now channel those scars into an unfair edge for the next wave of YC founders. Phosphor's mission is simple: help YC founders sustain their brilliance for the decade it takes to build something truly great.' About Phosphor Capital Founded and led by YC alum and serial entrepreneur Kulveer Taggar, Phosphor Capital is focused on investing in early-stage companies that have participated in Y Combinator. Taggar is a 2x YC founder who invested in companies like Mux, Boom and Plenful as an angel prior to launching his own fund. Phosphor Capital has raised and invested $34M to date, fully invested in YC startups including Reducto, Delve, Circleback and Gumloop. Taggar is known as a founder-friendly investor who provides a lot of guidance for startups, both tactical and strategic. He's passionate about ensuring founders make the right early hires and don't burn out. Learn more at Media contact: Michelle Faulkner Big Swing [email protected] 617-510-6998 A photo accompanying this announcement is available at
