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Home Global News

Techstars Investment Terms Update

by Leslie Finecountry
April 9, 2025
in Global News, Reports
Reading Time: 3 mins read

Today, Techstars is unveiling an enhanced investment offer for startups accepted into our future accelerator programs. Designed to provide founders with more capital, better alignment, and a simpler structure, this new $220,000* investment offer comes with all the benefits of our 3-month mentorship driven accelerator program along with access to our unparalleled global network of investors, mentors, partners, and alumni.

What’s in the New $220K Investment?

The updated investment offer includes:

  • $200,000 via an uncapped MFN SAFE
    This gives Techstars the right to invest in your next funding round at the most favorable terms offered to any investor, without setting a valuation today. It’s founder-friendly, simple, and flexible.
  • $20,000 through a Post-Money Convertible Equity Agreement (CEA)
    This converts into 5% common stock in your company, giving you capital now while maintaining long-term alignment.

Together, this results in an initial 5% equity stake, with the $200,000 SAFE converting based on your next round’s terms. For example, if your next round is at a $20M pre money valuation, the SAFE would convert into an additional 1% ownership.

Why We Made This Change

Founders told us they wanted a structure that’s easier to understand and easier to compare. Our new offer delivers that without sacrificing access to capital or network. It’s tailored for today’s fast moving, globally competitive startup landscape.

With more upfront capital and greater flexibility, founders can enter their next raise with stronger momentum and cleaner term sheets.

Demand Is Growing and So Is Our Impact

Applications to our accelerator programs have tripled since 2021. Founders recognize that our accelerators provide more than just capital. They deliver long term value through mentorship, strategic guidance, and lifelong access to the Techstars ecosystem.

The results speak for themselves. Techstars backed companies have raised more than $30 billion in total funding. Our portfolio includes 21 unicorns and 118 companies currently valued at over $100 million each. Together, these startups are shaping industries and transforming communities.

Apply Now: Fall 2025 Cohorts Open Today

We’re now accepting applications for our Fall 2025 accelerator programs worldwide. This new investment structure applies to all programs, giving every founder the opportunity to benefit from increased capital, simplified terms, and the full power of the Techstars network.

In this video, Techstars Chief Investment Officer Andrew Cleland and I take a closer look at the new deal structure and how it sets founders up for long-term success.

If you’re building something bold, we want to hear from you. You can explore our global accelerator programs here.

Let’s build something world changing together.

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