Y Combinator investing more than pro-rata

I wrote about Y Combinator’s new billion dollar fund in an earlier post.

In that analysis, I shared my view that YC’s new fund needs to not only retain its pro-rata in the follow-on rounds of all of its companies below a post-money valuation of $250M (as announced by YC), but to “go one step further by also starting to differentiate whether and how much it follows on in each of its companies.” Specifically, I claimed that it needs “to start doing more than its pro-rata in winners and not following on in others.”

This past week, TechCrunch announced that YC will be leading the upcoming $30M+ round of background checking API service Checkr. If this is correct, since YC is leading the round, this will be an example of a company where YC invests more than its pro-rata.

It looks like YC’s new fund may indeed be performing the logical strategic expansion necessary for it to achieve greater returns.