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Today Techstars is announcing an equity back guarantee that goes into into effect for all companies participating in a Techstars program starting in 2015 and beyond. The reason for this is quite simple. We firmly believe in the value of the Techstars accelerator program and in the long term value of our network. This makes it easy to take this step to “put our equity where our mouth is.”

Over the years, but especially now that we’ve scaled up to 13 different locations, we’ve seen more companies coming to Techstars not only for our accelerator program but also to leverage the ongoing value of the Techstars network. Techstars is now a massive interconnected network of over 3,000 successful entrepreneurs, mentors, investors, and corporate partners. That network value lasts a lifetime, whether you’re starting your first company or your fifth.

Some of the founders we’ve funded over the years have been skeptical of the value of Techstars on the front end. Most of those ended up talking with the alumni of Techstars and ultimately got comfortable and made the leap of faith. But we’ve noticed a very clear and consistent pattern: they’re never skeptical of the value after the Techstars program ends. In fact, they tell us consistently that it was completely worth it. The equity back guarantee completely removes this up front concern that some may have.

Now, if you’re a founder who wants to get efficient and focused feedback, challenge yourself to be better, build your network, and leverage the massive Techstars network, you can do it in a completely risk free way. You can participate in Techstars under our standard terms, which now includes this equity back guarantee for every single company. At the end of the Techstars program, your company will have 3 business days to lower or eliminate our equity position if they’re not satisfied with the value of Techstars.

In the Techstars tradition of #givefirst, we’re proud to offer our equity back guarantee to ensure that every company we work with is completely satisfied with the value that we provide. We hope to see your company applying to Techstars soon. You quite literally have everything to gain, and nothing to lose.

For the nitty gritty legal details, see here.

David Cohen
(@davidcohen) Co-founder & Managing Partner of Techstars, previously founder of several technology companies. David is an active startup advocate, advisor, board member, and technology advisor who comments on these topics on his blog at DavidGCohen.com



  • 676353029

    This is awesome! So naturally aligned with who you are as a human and such a great move of leadership in the industry overall.

  • 10723059

    Bold! I really dig this. #proofofthepudding

  • 10723059

    Bold! I really dig this. #proofofthepudding

  • 620370629

    brilliant

  • 620370629

    brilliant

  • 620370629

    brilliant

  • 620370629

    brilliant

  • 1314430840

    Love it. Well played.