Techstars increases startup funding to $220,000, mirroring YC structure

Techstars, a nearly 20-year-old startup accelerator, announced new terms for startups that enter its three-month program. The organization will now invest $220,000, which is $100,000 more than it offered previously, in companies starting with its fall 2025 batch. The capital will be divided into two components. The group is offering companies $20,000 in exchange for 5% ownership in the business. Startups will also receive $200,000 in the form of an uncapped SAFE note with a “most favored nation” clause. Put more simply, Techstars percentage ownership of its $200,000 SAFE will depend on the company’s subsequent valuations. For example, if the startup’s next financing “prices” it at $10 million, Techstars will receive 2% equity on the SAFE component for a total of 7% ownership. Techstars’ new terms now closely mirror those of Y Combinator. The famed Silicon Valley accelerator increased its funding to startups three years ago by adding a $375,000 SAFE note to its standard deal of $125,0 ... Read full article.