Techstars increases startup investment package to $220K, replacing former $120K deal
On Thursday, April 17, 2025, Techstars, a leading global startup accelerator and venture capital firm, announced a major update to its investment structure. The new Techstars investment term revamped its previous offer of $120,000 and now would give startups accepted into its programme $220,000. This Techstars investment term will take effect from the fall 2025 batch.
Key changes to Techstars Investment Term
Under the revised structure, startups will receive $20,000 in exchange for 5% equity through a fixed percentage Convertible Equity Agreement (CEA)—an agreement that allows investors immediate ownership stake. In addition, founders will have access to a $200,000 uncapped Simple Agreement for Future Equity (SAFE)—an agreement that allows investors invest in a company with the promise of getting a certain percentage when the company raises its next funding round of at least $1 million using a most favored nation (MFN) clause.
The CEA gives founders insight into how much ownership they’re immediately giving up, while the uncapped SAFE note enables them to delay setting a valuation until a larger funding round happens and hence reducing unnecessary early-stage pressure. The MFN clause ensures Techstars secures the best possible terms.
This Techstars investment term is supported by a side letter which grants Techstars certain shareholders’ rights and allows them to participate in future funding rounds. Not just this, the new structure with its great benefits also comes with greater reporting obligations and ongoing commitments from the startups, which means more transparency and involvement than ever before.
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Techstars’ latest move reflects a broader trend amongst startups accelerators globally. With more startups now requiring time to achieve market fit products and facing intensified competition for funding, accelerators are adjusting their investment models. In 2022, Silicon Valley-based Y Combinator made a similar adjustment, introducing a $375,000 SAFE alongside its pre-existing offer in exchange for 7% equity.
Speaking on the Techstars investment term development, David Cohen, founder and CEO of Techstar stated;“The improved offer of $220,000 investment comes with all the benefits of our three months mentorship driven accelerator program, value perks from our partners, and access to our world-class networks of investors, partners, mentors and alumni.”
Founded in 2006, Techstars has grown into one of the leading accelerators, and has invested in over 3,700 companies across the world. Some of Its alumni network include companies such as Sendgrid, DigitalOcean, TradingView, Kepler Communications, Damon Motorcycles amongst others.
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Since its inception, Techstars’ investment term has evolved over the years. In 2007, it offered between $6,000 and $18,000 to startups, depending on the number of founders the startup has, in exchange for 5% equity. By 2011, it increased the investment model offering $120,000 through a convertible note. Now in 2025, Techstars is adding an additional $100,000, which raises the current total to $220,000, while maintaining a focus on mentorship and growth through its three-month accelerator programme.
As the startup ecosystem continues to evolve, greater access to early-stage capital, coupled with flexible investment structures, has become a strategic tool for accelerators looking to attract promising startups and stay competitive. The revamped Techstars investment term underlines this shift, signalling a new phase in how startup support systems are adapting to the realities of a challenging fundraising landscape.
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