TechStars increases start -up funding to $ 220,000, mirrored YC structure of YC

Techstars, a nearly 20-year-old start-up accelerator, has announced new conditions for start-ups that enter their three-month program. The organization will Now invest $ 220,000which is $100,000 more than offered earlier, in companies starting with their fall 2025.

The capital will be divided into two components. The group offers $ 20,000 companies in exchange for 5% business ownership. The startups will also receive $ 200,000 in the form of an unlimited safe note with the “Most Preferential Nation” clause. To put it simply, the TECHSTARS property percentage for its $ 200,000 safe will depend on the company’s next estimates. For example, if the next funding for the startup “prices” of $ 10 million, Techstars will receive 2% equity of the safe component for a total of 7% property.

Techstars’s new terms now reflect those of Y Combinator. The famous Silicon Valley Accelerator increased its funding to start -ups three years ago By adding a safe $ 375,000 note to your standard $ 125,000 deal for 7% of startup capital.

So which accelerator offers a better deal for startup companies? The answer largely depends on the company’s capital needs. Compared to Techstars, startups passing through YC receive more than twice funding, but give up more equity.