TechStars Raises $8 Million In Funding
With locations all over the country, TechStars is a “mentorship-driven seed stage investment program.” Each year, they run a three month long program in Boston (MA), Boulder (CO), New York City (NY) and Seattle (WA). TechStars is very selective, hand picking about ten companies out of hundreds for each city. These companies get up to $18,000 in seed funding, three months of intensive top-notch mentorship, and the chance to pitch to angel investors and venture capitalists at the end of the program.
TechStars has recently raised another $8 million in funds. The $8 million big ones come from funding over fifty venture funds and 25 angel investors, bringing TechStars total funding to nearly $11.5 million. TechStars provides up to $18K in seed funding and receive a percentage of the company in exchange, while the company gets a world class mentor during the three month program. During this program, tech entrepreneurs incubate their ideas with the mentors provided and by the end, it is time to pitch their ideas to the big investors. In a way, it’s like studying three months before taking a big test, you either pass or fail. David Cohen, co-founder (pictured right) of TechStars claims a 70% “passing rate” among their graduates, those that receive some type of funding from large investors. The recently raised $8 million will power TechStars’ goals for the next four years, which is a very nice outcome. The company itself was formed in 2006.