TechStars Equity

TechStars receives 6% of the equity in your new company in exchange for seed funding of up to $18,000 and extensive mentorship during the summer as well as a chance to present to angel investors, venture capitalists, and top media at Investor and Demo Day.

Many people ask what sort of “company controls” the TechStars stock will include. They want to know if they have to give up board seats or other decision making rights. The answer is no – NONE. We want to be considered a co-founder, so we don’t want stock that has any special rights or controls that you don’t have yourself. That’s why we refer to it as “founders stock.”

Some people ask if TechStars is really worth 6%. We think it’s worth much more, and so do all the past founders we’ve had in the program. 75% of companies who have gone through TechStars in the past have ultimately received additional angel funding or venture capital or have become profitable by the end of the program. We really encourage you to ask them yourself.

TechStars receives common stock, just like you get as a founder. If you take on significant additional investment in the future, TechStars stock is subject to dilution just like yours. After the summer, we’re vested to continue to help you succeed. However, the company will continue to be fully yours to run as you see fit. We ask for no board seats or other types of control – it’s your company.