Techstars files to raise $150 million fund
It is the latest news from the organization that has made headlines in the start-up world recently with the closing of several accelerators and the departure of its CEO.
TechCrunch reports that Techstars, which will graduate the third cohort of its “Industries of the Future Accelerator” in Knoxville on Thursday, is raising a new $150 million fund.
According to the article, the organization is seeking new capital ahead of the end of the deployment period of its third institutionally-backed fund, Techstars Accelerator 2021, later this year. Start-ups participating in Techstars’ three-month programs receive $20,000 and a $100,000 convertible note in exchange for six to nine percent of common stock, in addition to access to the Techstars’ network and mentorship.
The Form D filing with the Securities and Exchange Commission for the Techstars Accelerator 2024 fund can be found here.
Separately, returning Chief Executive Officer (CEO) David Cohen, who had been Chair of the Techstars Board of Directors for the past several years, used a blogpost to address some of the issues that have enveloped the organization in the last several months. Before previous CEO Maëlle Gavet announced her resignation for health reasons about 12 days ago, she had announced several changes including a headquarters relocation to New York City and the termination of several accelerators, including one in Boulder.
Cohen’s blogpost addressed those issues, noting that he was returning for the long-term and Techstars would have offices and staff in three cities – Boulder, New York, and London – but left somewhat unsaid what the future of terminated accelerators in places like Austin, Boulder and Seattle might be.
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