Farukh Kitchlew | Feb 19, 2024 | 0
Techstars raising $150M for new accelerator fund
Techstars, a prominent startup accelerator, is currently in the process of raising $150 million for its latest fund, as revealed in recent filings with the Securities and Exchange Commission (SEC). The new fund, Techstars Accelerator 2024, aims to provide crucial support to startups during the accelerator stage and beyond.
While specific details about the allocation of the funds remain undisclosed due to regulatory restrictions, Techstars plans to use the new fund for accelerator-stage and post-accelerator investments, similar to previous funds. The fund has only made accelerator-stage investments, while previous funds supported firms throughout the accelerator stage and made follow-on investments.
Accelerator Programs and Backed Startups
Fund 3, Techstars’ most recent initiative, aims to support 800 pre-seed and seed startups in its global accelerator programs by 2023. With over 3,500 early-stage startups in various sectors, Techstars has a network of 50 accelerator groups in major cities worldwide. Techstars, founded in 2006, offers in-person, virtual, and hybrid accelerator programs across 36 cities and 12 countries. The accelerator has invested in businesses like Canopy, Rheaply, and Veho. Its global presence and diverse portfolio make it a leading player in the startup ecosystem.
Financial Benefits and Resources for Selected Startups
A $20,000 investment and a $100,000 convertible note are given to startups chosen to participate in Techstars’ three-month program in exchange for a 6% to 9% equity stake in common stock. They also gain access to Techstars’ vast mentor network and priceless resources, increasing their chances of success.
Techstars’ Expansion Efforts and Collaborations
Techstars is actively increasing its investment activities. It established the Rising Stars Fund to aid underrepresented founders of early-stage American businesses. Additionally, Techstars launched the Advancing Cities Fund, a $80 million initiative supporting diverse founders in nine U.S. cities, in partnership with JPMorgan Chase & Co.
As Techstars continues raising capital for its new fund, the company remains dedicated to helping early-stage companies thrive. The future looks promising as Techstars continues to shape the startup landscape and support the next generation of groundbreaking businesses.