The startup accelerator, Y combinator will be adding to the summer batch, to date, its most advanced startup, the Q&A company, Quora. However, like others, it will not have to give 7% of its equity to join the batch. Also, it won’t be counted as a part of the accelerator’s portfolio.
The announcement was made by accelerator in a public blog post on Friday. “This is a new experiment for us; we’ve funded later-stage companies before, but none close to Quora’s stage. Our hope is that both the company and the YC community will get a lot of value out of this,” as mentioned by Sam Altman, Y Combinator President, in the blog.
Quora was an initiative of Adam D’Angelo and was launched in private beta in early 2010 as a Question and Answer portal where people can sought answer to their queries. Over the period, it has evolved as a cache for the research that people do looking things up on the web and asking other people.
Till date, the company has raised USD 141 million in three rounds of funding including the recent USD 80 million in Series C. It is backed by investors such as Peter Thiel, Benchmark, Tiger Global Management, North Bridge Venture Partners, Matrix Partners and more.1
As explained by Adam in his Quora post, the move aims at analyzing the opportunities in the YC network. He believes it will be “fun” to participate in some of the YC events and also hope that his perspective might help some of the other companies.
“We were raising money anyway, so there was no overhead in letting YC participate – this ends up the same for us as if we had just raised slightly more money from Tiger,” he added.
Although, both YC and Quora founders are giving their own reasons, analysts worldwide are looking this from number of angles. Some interpret it as a liability on Quora side while others feel that company will gain access to talent as well as learn to pitch well. Also, it has been said that it is another of YC’s strategic move to test waters for its new growth model-essentially looking at whether they could provide value to later stage companies.
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