Techstars, the worldwide network that helps entrepreneurs succeed, banks a US$42M investment led by SVB Financial Group, the holding company of Silicon Valley Bank. Additional participation was from existing investors including Foundry Group.
This funding will accelerate Techstars’ growth to help more entrepreneurs succeed through seed-stage accelerators, global startup ecosystem activations, corporate innovation, and entrepreneur-focused events.
Techstars consists of both an investment management business with US$500 million in assets under management as well as an operating business that is rapidly approaching US$100 million in annual revenue.
Techstars’ investment activity now includes 49 accelerator programs in 35 cities across 16 countries, deploying US$80 million into nearly 500 startups on an annual basis.
“Being the largest and most active global seed investor requires a mindset and approach that is completely distinct from traditional venture capital,” said Techstars Co-CEO David Cohen. “Techstars has created and is scaling an entirely new type of early-stage private equity asset.”
The Techstars portfolio of 1,900 companies currently attracts an annual US$2 billion in downstream investment from the venture capital industry. Techstars also invests in global emerging startup communities by operating approximately 1,000 annual Techstars Startup Weekend events in 600 cities across 120 countries to help surface and support future high growth companies.
In addition to the financing, John China, President of SVB Capital, has joined Techstars’ Board of Directors. “The Techstars team is well-positioned to keep developing its platform and enable and support founders, investors and startup ecosystems around the globe,” said China.
“SVB has a long history working with Techstars and its portfolio companies and we’re enthusiastic about the opportunity to further our relationship and make a bigger positive impact on the innovation economy.”
Earlier this year, two startups from Africa, i.e. Ghanaian AgriTech Cowtribe and Nigerian InsurTech Wella Health were selected to be part of ten other startups from across the world to be part of Techstars Impact Accelerator 2019 Class.
The 3-month program which is based in Austin, US invests US$120,000 into startups from around the world who believe solving pressing social & environmental problems can sit hand-in-hand with building a successful company.