Startup incubator Techstars is seeking $150 million for a new fund. The accelerator is looking for new funding as the deployment phase of its third institutionally-backed fund, Techstars Accelerator 2021, comes to an end later this year according to Techcrunch.
The new fund, Techstars Accelerator 2024, is planned to be utilized for accelerator-stage and/or post-accelerator investments, similar to its predecessors.
Particularly, the Boulder-based early-stage investor has only made accelerator-stage investments with its current fund. Its past funds were invested in startups throughout the accelerator stage as well as after the program.
By the end of 2023, Fund 3 hoped to have backed over 800 pre-seed and seed firms through its global accelerator programs.
Techstars has funded approximately 3,500 early-stage entrepreneurs in a variety of industries, including health tech, banking, web3, and clean tech, through its accelerator programs.
Techstars’ three-month program provides startups with $20,000, and a $100,000 convertible note in exchange for 6% to 9% of common stock, as well as access to its network and mentorship, among other tools.
The accelerator operates more than 50 groups across cities in the world, including New York, Los Angeles, London, Boston, Tel Aviv, and Lagos.
The accelerator opened the Lagos arm last year in collaboration with ARM Labs as part of its global expansion of specialty and generalist programs.
Techstars has just raised additional funds to enhance its investment efforts in order to further double down on its development and scaling objectives.
For example, last year it introduced Rising Stars, a fund to support entrepreneurs that are too early for its accelerator programs. Techstars will offer $100,000 cheques in exchange for 7% to 10% equity in this fund.
In addition, the accelerator announced the $80 million Advancing Locations Fund in collaboration with JPMorgan to support over 400 firms led by diverse founders in nine locations throughout the United States.
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