Techstars is a nearly 20-year-old startup accelerator that has announced new terms for startups entering its three-month program. The organization will Invest $220,000 nowthis is $More 100,000 Among the companies starting in the fall 2025 batch, it is more than the companies that have been offered before.
The capital will be divided into two components. The group offered the company $20,000 in exchange for 5% ownership of the business. Startups will also receive $200,000 in the form of uncovered notes on the “most popular country” clause. In short, TechStars’ $200,000 security ownership will depend on the company’s subsequent valuation. For example, if the startup’s next financing “price” is $10 million, Techstars will get 2% of the security component, with a total ownership of 7%.
TechStars’ new term now closely reflects the terminology of Y-combinator. Famous Silicon Valley accelerator increases funding for startups Three years ago By adding $375,000 to its standard deal, or $125,000, it represents 7% of startup stocks.
So, which accelerator offers better deals for startups? The answer depends largely on the company’s capital needs. Compared with TechStars, startups through YC received more than double the funds but gave up more equity.
