Total amount raised
$108.8 Million
Latest funding date
5/1/2021
Location
Techstars has successfully raised capital through six funding rounds, with the latest being a Venture - Series Unknown round. The accelerator has made over 6,462 investments, including its most recent in Automotus.
With a portfolio market cap of $130.6 billion and 22 companies valued at over $1 billion, Techstars continues to support early-stage startups through pre-seed investments and mentoring. Keep reading to explore the intricacies of Techstars' fundraising journey and the investors backing this influential platform.
What Is Techstars?
Founded in 2006, Techstars is a global platform that supports entrepreneurs and startups through mentorship-driven accelerator programs, capital investment, and access to a vast network of mentors, partners, and investors. The organization is headquartered in Boulder, Colorado, USA.
Techstars operates in various industries, including venture capital, startup acceleration, consulting, finance, financial services, and FinTech. The company has a significant employee base, ranging from 251 to 500 employees.
Founded by David Cohen, Brad Feld, David Brown, and Jared Polis, Techstars has made a substantial impact on the startup ecosystem, boasting a portfolio market cap of $130.6 billion and numerous successful companies under its wing.
How Much Funding Has Techstars Raised?
- Series Unknown
- Amount Raised: USD 2,000,000
- Date: February 2011
- Lead Investors: Not publicly disclosed
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To support early-stage startups with initial funding and mentorship.
- Series Unknown
- Amount Raised: USD 8,000,000
- Date: March 2011
- Lead Investors: Not publicly disclosed
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To expand the accelerator program and increase the number of startups supported.
- Series Unknown
- Amount Raised: USD 24,000,000
- Date: September 2011
- Lead Investors: Foundry Group, IA Ventures, Avalon Ventures, DFJ Mercury, SoftBank Capital, SVB Financial Group, RRE Ventures, Right Side Capital Management, TechStars Alumni
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To provide each new TechStars company with an additional $100,000 in funding to help them focus on progress rather than early fundraising.
- Series Unknown
- Amount Raised: USD 27,800,000
- Date: February 2016
- Lead Investors: Not publicly disclosed
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To scale operations and support a larger number of startups globally.
- Series B
- Amount Raised: USD 42,000,000
- Date: July 2019
- Lead Investors: SVB Financial Group
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To enhance the accelerator programs and expand into new markets.
- Series Unknown
- Amount Raised: USD 4,999,999
- Date: May 2021
- Lead Investors: Not publicly disclosed
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To continue supporting early-stage startups and expand the mentor network.
Total Amount Raised: USD 108,799,999. Current Valuation: Not publicly disclosed.
Key Investors
- SVB Financial Group
- Details: SVB Financial Group is the parent company of Silicon Valley Bank, which provides various financial services to startups and growth companies. They have been a lead investor in Techstars' Series B funding round.
- Investment Focus Areas: Financial services, technology, healthcare.
- Notable Investments: Series B - Techstars, numerous startups and growth companies.
- Foundry Group
- Details: Foundry Group is a venture capital firm focused on investing in early-stage information technology, internet, and software startups. They are listed as one of the most recent investors in Techstars.
- Investment Focus Areas: Information technology, internet, software startups.
- Notable Investments: Zynga, Fitbit, SendGrid.
- IA Ventures
- Details: IA Ventures is a venture capital firm that invests in early-stage companies focused on big data, machine learning, and data science. They have been involved in Techstars' funding rounds.
- Investment Focus Areas: Big data, machine learning, data science.
- Notable Investments: Datadog, The Trade Desk, DigitalOcean.
- Avalon Ventures
- Details: Avalon Ventures is a venture capital firm that invests in seed and early-stage companies in the technology and life sciences sectors. They have participated in Techstars' funding rounds.
- Investment Focus Areas: Technology, life sciences.
- Notable Investments: Zynga, Ironwood Pharmaceuticals, Avelas Biosciences.
- SoftBank Capital
- Details: SoftBank Capital is a venture capital firm that invests in early-stage technology companies, particularly in the internet and mobile sectors. They have been a key investor in Techstars.
- Investment Focus Areas: Internet, mobile sectors.
- Notable Investments: Yahoo Japan, Alibaba, WeWork.
What's Next for Techstars?
Techstars is poised for significant growth, leveraging its recent $24 million funding round to provide startups with an additional $100,000 in convertible notes. This financial boost, combined with their robust mentorship program, positions Techstars to attract a diverse array of innovative entrepreneurs. The expansion of their programs to multiple cities and the introduction of thematic initiatives like TechStars Cloud further amplify their reach and impact.
Future fundraising opportunities look promising, with over 70% of Techstars companies successfully raising venture or angel capital post-incubation. This trend underscores the accelerator's ability to nurture startups that appeal to investors. However, Techstars must navigate challenges such as competition from other incubators like Y Combinator and maintaining the quality of their mentorship-driven approach as they scale operations.
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