Targeting 15-20 top Y Combinator Startups in the W16 Batch
The Orange Fund invests in up to 20 top startups in Y Combinator's Winter 2016 batch. Y Combinator is the Harvard of startup accelerators, often the top choice for the most promising startups. We have no official relationship with Y Combinator nor any special access to startups; rather, we're alumni of the program. Fund managers have invested in over 160 startups that have increased in valuation over $5 billion in the last two years.
Sohail Prasad Manager @ Orange Fund IV
Last Funded March 2016!
total funds raised
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Why you may want to support us...
840+ startups funded by Y Combinator
Total "valuation" of all YC companies: $65+ billion
Number of YC companies worth more than $100 million: 40+
9 YC startups worth over $1 billion
Y Combinator accepts ~2% of applicants. The Orange Fund invests in top ~20% of YC graduates.
As President and Co-founder of Wefunder, Mike has funded 115+ startups over the last two years that have increased in valuation over $5 billion since he’s invested. Undercover MBA and retired kickboxer. Ardent helper and true believer in the problem solving ability of passionate teams.
Sohail is the Founder & CEO of Equidate, the leading marketplace for equity in private companies. He has an extensive background in product management, engineering, and business. As an eighteen-year-old, he was among the youngest founders to go through Y Combinator. Over the years, Sohail has advised and invested in a number of startups, including notable startups such as Zenefits and Coin. He continues to invest actively through S2 Capital, and serves as its Founding Partner. Prior to founding Equidate, Sohail managed mobile product at Zynga. He previously joined mobile advertising firm Chartboost as its second engineering hire, and has held roles at Google and the MIT Media Lab. Sohail was awarded TCU's Texas Youth Entrepreneur of the Year award in 2010. He previously attended Carnegie Mellon University where he studied Electrical & Computer Engineering.
Samvit currently serves as Founder of Equidate, the leading marketplace for equity in private companies. He has extensive expertise in engineering, product development, and business. Samvit went through the Y Combinator program and started his first venture-backed company when he was nineteen years old. Prior to starting Equidate, Samvit co-founded Streem, a cloud storage company which was acquired by Box in 2014.
Samvit is an active angel investor and frequently invests in startups through S2 Capital, where the value of their portfolio companies has increased by over $4.8 Billion dollars over the last few years.
His previous work spans numerous startups, most recently including Asana where he built out distributed systems infrastructure and Livemagic where he developed audio fingerprinting algorithms. In a previous life, he conducted research on high temperature superconductivity at the Lawrence Berkeley National Lab. Samvit holds a BS in Electrical Engineering and Computer Science from UC Berkeley.
Who manages The Orange Fund?
Our fully-owned subsidiary, Wefunder Advisors LLC, manages the fund on your behalf. Wefunder Advisors is an exempt reporting investment advisor.
Why are only 95 investors allowed?
If the Orange Fund has fewer than 95 investors, it's not regulated as a full-fledged mutual fund, which would dramatically increase costs and make the fund impractical as an investment vehicle.
How will you choose the 95 investors?
We place priority on investors who invest high amounts early, but make exceptions for those who can help the portfolio of startups that the Fund invests in. This includes engineers and those with good social networks.
What is the investment horizon?
Startup investments have a very long term horizon. It typically takes 3-7 years for a successful company to have a liquidity event, when it either gets acquired or has an IPO.
When are funds distributed?
We disperse funds to investors when any company in the portfolio has a liquidity event.
Can I withdraw my money?
No. The Orange Fund is not a mutual fund. All capital will be invested in private companies in long-term, illiquid investments.
What are typical valuations and securities?
While there are exceptions, most Y Combinator startups will raise funding with a SAFE at a valuation cap of between $6 to $15 million.
How are valuations and terms set?
The Orange Fund does not set terms, instead following the valuation and terms set by larger angel investors and venture capitalists. Many Y Combinator startups raise between $1 to $2 million for their seed round, so investments made by the Orange Fund will typically be less than 10% of their total fundraise.
Can I see a preview of the Orange Fund agreements?
Orange Fund investors sign the Operating Agreement and Subscription Agreement. The agreements were drafted by Cooley LLP.
Which startups will The Orange Fund invest in?
At least 90% of funds will be investments made in startups from Y Combinator's Summer 2015 class. This is a pool of approximately 100-120 startups. We may invest up to 10% in Y Combinator startups from prior classes. The Orange Fund selects startups based on our investing criteria.
How many investments will be made?
The Orange Fund will make between 15 and 25 investments. The exact number will depend on the quality of the Y Combinator batch.
What is the typical investment size?
The Orange Fund will invest in amounts as low as $25,000 and as high as $200,000 in each startup.
Are you guaranteed to be able to invest in every startup?
No. We need convince the founders to allow us to invest. To get access to the most promising startups, we move fast, write quick checks, and offer help with design and customers. The Orange Fund is also managed by Y Combinator alumni, which gets us in the door. We have a track record of getting access to hot Y Combinator startups, like Zenefits.
Do you have a relationship with Y Combinator?
Wefunder is an alumnus of Y Combinator. However, we do not have a co-investing relationship with Y Combinator or any of their partners. Rather, we're well-networked with founders who are part of Y Combinator since we've attended the program in the past.
When will I be notified of executed investments?
Within a couple weeks of Demo Day, you'll be notified of the selections via e-mail.
How are taxes handled?
We're not allowed to offer tax advice. You'll receive a single K-1 from The Orange Fund each year. Your accountant can offer more specific advice.
Does The Orange Fund accept international investors?
Yes, if legal in your country. You should check with your lawyer and accountant.
Can I make an investment within my IRA?
What updates will I receive?
Once a quarter, we update all investors on the status of the portfolio. Additionally, some startups in the portfolio may choose to send additional investor updates or requests for help to your Wefunder activity feed.
Can I talk to someone on the phone?
Of course! We pride ourselves on customer service. Speak with a Manager of The Orange Fund by scheduling a call at scheduleonce.com/wefunder
I've never invested in a startup. Can I learn more?
Yes. You can check out our FAQ for more information on risks, returns, different securities, and how startup financing works. Or schedule a call with us.
Orange Fund IV is conducting a Regulation D offering via Wefunder Advisors LLC. CRD Number: #167803.
Wefunder supports three different federal laws that allow startups to raise money legally. To comply with the law, Wefunder Advisors LLC and Wefunder Portal LLC (both owned by Wefunder Inc) also list startups depending on the regulation used.
Legal May 16th 2016
Wefunder Portal LLC
for 315 startups
Wefunder Advisors LLC
for 105 startups
for 3 startups
Curious how well the companies have done? Or how many raised follow-on financing?
Some fine print: 1) These numbers include startups currently live on Wefunder if they pass their minimum target. 2) Some startups use two different laws at the same time (i.e., Regulation D and Regulation Crowdfunding).
Join 667,213 investors who funded 402 startups with over $143 million1
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