Pioneer Fund raising $20 million to back YC startups

Pioneer Fund has held an initial close on its debut fund, which is targeting $20 million, according to managing partner Jason Gray. Its investors are Y Combinator alumni, and its strategy is to back other YC alumni startups.

Network effects: Since its 2005 launch, Y Combinator has coached hundreds of startups, including notable successes like Twitch, Dropbox, Cruise, and Airbnb. It's no surprise that alumni entrepreneurs are investing their own money into others in the network.