Another $100,000 For Every TechStars Company
Today, TechStars announced that they’ve raised $24 million from a broad syndicate of investors to fund an additional $100,000 for every TechStars company going forward. The investors include Foundry Group, IA Ventures, Avalon Ventures, DFJ Mercury, SoftBank Capital, SVB Financial Group, RRE Ventures, Right Side Capital Management and TechStars alumni.
There are lots of good articles on the news – two of them are at TechCrunch (Startup Incubator TechStars Raises $24M, Increases Funding For Each Company By $100K) and Launch (TechStars Offering Extra $100K to All Companies with New $24M Fund.)
One of the principles of TechStars has been to be as inclusive as possible for the VC and angel investors in the communities in which we run programs. To date, there are over 75 VCs and angels that are funding TechStars programs in Boulder, Boston, Seattle, and New York. There are many more who have invested in individual TechStars companies.
With the launch of the new TechStars Cloud program, there are now over 60 new companies a year going through TechStars and getting launched. At $100k / company, TechStars has raised enough to fund each company with the incremental $100k for the next three to four years (that’s a hint that there will be more programs coming.)
When I think about all the amazing investors – and the hundreds of mentors – involved in TechStars, I’m deeply humbled to be a part of it.