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TechStars Gets Increased Funding, Wants To Invest More In Startups
By Chris Richardson
Staff Writer
Article Date: 2011-09-22
Investing in startup companies is something that clearly keeps the wheels of industry going, especially in the tech sector. A young, up and coming business that can help shape the future of ecommerce and the tech industry itself may need some help getting off the ground, and that's where a company like TechStars comes into play.
Already established as startup incubator, TechStars has increased the level of its funding by $24 million, and the company wants to pass these new funds onto the applicable startups, increasing the amount by $100,000. For further information about TechStars, we'll refer to a TechCrunch article, which offers:
TechStars, which launched in 2007, is a "startup boot camp" for tech entrepreneurs in which selected startup receive up to $18,000 in seed funding (or $6,000 per founder up to three founders in exchange for 5 percent of the company), three months of mentorship from successful entrepreneurs and investors, and the opportunity to pitch to angel investors and venture capitalists at the end of the program. With the increased funding TechStars secured, new startups that get accepted into the program will be given $100,000 as an investment in their success.
The $100,000 of additional funds does not include the initial $6000 startups receive, something TechStars will continue to provide. Concerning the new funding an the additional monies these new companies can receive, TechStars CEO David Cohen says:
The goal here was to decrease the amount of immediate and burning need that many of our companies faced when entering the program. For many of them, it was a struggle to figure out how to make it to demo day and then a few months later while their rounds came together. Currently, TechStars funds about 60 companies per year, of which, a large amount continuing to raise venture capital when their time with TechStars comes to an end. The new money received by TechStars will be passed on to the 2012 startups the company selects to invest in.
About the Author:
Chris Richardson is a search engine writer and editor for WebProNews. Visit WebProNews for the latest search news.
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