WHAT IS TECHSTARS?
As a founder who had the privilege of going through Techstars (Class of ‘20 - Boulder), I can confidently say that it was a transformative experience for my startup, Gondola. If you've ever wondered, "What is Techstars?", or "How does Techstars work?", you've come to the right place.
In this blog post, I will share my personal journey through Techstars, shed light on what Techstars is all about, and provide insights into how this renowned startup accelerator works.
Here are the 10 companies who joined our Techstars Boulder 2020 cohort. The ten companies include: Beanstalk, Charmed, Demoflow, FITco, TermScout, The Accessory Junkie, Sympatic, VideoPeel & Warmly. This is the 14th class in Boulder since Techstars launched in Boulder in 2007!
What is Techstars?
“The largest pre-seed investor in the world”
Techstars is more than just a startup accelerator; Techstars it's a global ecosystem that empowers entrepreneurs to succeed. Founded in 2006, Techstars has emerged as one of the most prestigious and influential startup accelerator programs worldwide. It operates on a simple yet powerful mission: to help entrepreneurs succeed by providing them with the resources, mentorship, and network they need to thrive.
Techstars has invested in more than 3,500 early-stage startups. As one of the largest pre-seed investors in the world, Techstars portfolio is as diversified as our 7,300 founders are unique - They work with a wide range of companies in categories such as: HealthTech and FinTech, to Web3 and CleanTech; in cities ranging from Miami and Silicon Valley to Lagos and London.
Where is techstars based?
Techstars has a strong presence across the globe, with accelerator programs in various cities. From the vibrant tech hubs of Silicon Valley to the bustling entrepreneurial scenes in New York City, London, Berlin, and many more, Techstars has strategically established its accelerators in key locations. This enables founders to tap into regional expertise, networks, and opportunities specific to their industries.
If you’re interested in finding an Accelerator for your company, check them out here.
How does Techstars work?
Techstars' accelerator programs typically follow a similar structure, designed to maximize a startup's growth potential. The process starts with a rigorous application and selection process, where a panel of experts evaluates startups based on their potential, team, and idea. If you’re looking for more resources on the application process, check out the links below:
Inside a Techstars Accelerator: The Application & Interview Process by Saba Karim
7 Tips for Applying to TechStars by Moisey Uretsky
Once accepted, the program kicks off with an intensive three-month curriculum, tailored to the specific needs of the participating startups.
What does program look like?
Month 1: Grow your Network and Craft your plan - In the first month, the ten companies participating in each program have the opportunity to engage with approximately 100 mentors from the extensive Techstars network. These mentors are renowned for their deep connections and vast expertise within their respective fields. Following these initial meetings, affectionately referred to as "Mentor Madness," some programs assign three to five mentors to serve as lead mentors and form a pseudo Board of Advisors for the founders throughout the program. In cases where there is a remarkable synergy between mentors and companies, it is common for these relationships to extend beyond the program's duration, with mentors continuing to collaborate and support the companies even after the program concludes.
Month 2: Execution - In the second month, founders begin applying the valuable insights acquired during the initial phase. Collaborating closely with the managing director and program manager, founders delve deeper into their engagements with their lead mentors, aiming to make significant progress and achieve crucial milestones. These milestones may include developing a prototype, expanding the product to the next phase, securing the first customer, and more. Throughout this month, founders prioritize the identification and attainment of their key performance indicators (KPIs). They dedicate themselves to reaching these important metrics that measure their progress and success. Additionally, if there is a corporate partner involved in the program, this month may also involve preparing for a proof of concept, leveraging the opportunity to showcase the viability of their ideas.
Month 3: Fundraise & Demo Day Prep - In the third month, founders embark on a deep exploration of the power of storytelling. This stage is of utmost importance as it directly impacts their fundraising efforts and ensures they are well-prepared for Demo Day.Founders collaborate closely with their mentors, managing directors, and program managers to refine their pitch, meticulously craft their pitch deck for Demo Day, and meticulously curate collateral for potential investors.Storytelling goes beyond just securing funds; it serves as a vital tool to effectively convey the founders' vision to both customers and prospective team members.
Throughout the program, founders receive mentorship, attend workshops and events, and refine their business strategies. The culmination of the program is the Demo Day, where each startup has the opportunity to showcase their progress and pitch their business to a room full of investors, industry professionals, and potential partners.
How much does Techstars invest?
Techstars primarily focuses its investment efforts during the accelerator stage, but it also operates a dedicated follow-on fund to support portfolio companies as they continue to grow.
At the beginning of the accelerator program, Techstars makes an initial investment of up to $120,000 in each company. This investment consists of a $20,000 equity investment, granting Techstars a 6% ownership stake in common shares, and an optional $100,000 convertible note.
In cases where a company is engaged in a Network Launch utilizing distributed ledger technology, such as an ICO, SAFT, or token event, Techstars will also receive 6% of the Token Reserve. Further details regarding our standard deal terms can be found in our description.
For more information and FAQ - check out this link
Is techstars worth it?
100% - It was singlehandedly one of the best business decisions I’ve ever made.
Techstars has truly revolutionized the startup ecosystem by providing entrepreneurs like me with an unparalleled platform to accelerate our growth and amplify our impact. The experience of going through Techstars was nothing short of transformative, shaping the trajectory of my startup and opening doors to invaluable connections and opportunities.
If you've ever dreamed of taking your startup to the next level, Techstars could be the game-changer you're looking for. With their global presence, top-notch mentorship, and comprehensive support system, Techstars equips founders with the tools they need to thrive in the competitive startup landscape. So, take the leap, explore what Techstars has to offer, and join the vibrant community of passionate entrepreneurs changing the world, one startup at a time.
