The theme of this chapter is the relation between the initial algebra for a set functor and the terminal coalgebra, assuming that both exist and that the endofunctor is non-trivial. We introduced a notion called pre-continuity. Pre-continuous set functors generalize finitary and continuous set functors. For such functors, the initial algebra and the terminal coalgebra have the same Cauchy completion and the same ideal completion: the $\omega$-iteration of the terminal-coalgebra chain. It follows that for a non-trivial continuous set functor, the terminal coalgebra is the Cauchy completion of the initial algebra.