Techstars, a starting accelerator of almost 20 years, announced new terms for new companies that enter its three -month program. The organization Now invest $ 220,000which is $100,000 more of what he offered previously, in companies that begin with their autumn lot of 2025.
The capital will be divided into two components. The group offers companies $ 20,000 in exchange for 5% property in the business. The new companies will also receive $ 200,000 in the form of a safe note without limit with a “most favored nation” clause. In a nutshell, the percentage property of Techstars of its safe of $ 200,000 will depend on the subsequent valuations of the company. For example, if the next financing of the startup “prices” at $ 10 million, Techstars will receive a 2% capital in the safe component for a total of 7% property.
Techstars’s new terms now reflect closely and Combinator. The famous Silicon Valley accelerator increased its financing to the new companies three years ago by adding a safe note of $ 375,000 to its standard agreement of $ 125,000 for 7% of the startup assets.
So what accelerator is offering a better treatment for new companies? The answer depends largely on the capital’s capital needs. Compared to Techstars, the new companies that pass through YC obtain more than double financing, but renounce more capital.
