You get $118,000 in seed investment upon acceptance into Techstars for 7-10% equity in your company. You also have access to great perks such as free hosting and services, sponsored meals, office space with the other teams, and more. There is immeasurable value in the connections and advice that you'll receive when you start your company with Techstars, and also in the opportunity to pitch to angel investors and venture capitalists at the end of the program during our Investor and Demo Day. Historically, Techstars companies go on to average more than $2.0M raised in outside capital after the program.
We fund technology oriented companies, typically these are web-based or other software companies, but we've funded companies that don't quite fit that mold as well. We're also looking for companies that can have national or worldwide reach. Specifically, we don't fund biotechnology companies, restaurants, consultancies, or other local service oriented companies.
Anyone from anywhere can apply, and we've funded many non-US companies in the past. You do have to be legally in the U.S. during the program, of course. Once accepted, we can help with legal/immigration issues by leveraging our contacts and network to help. However, we cannot help with them in advance of acceptance to Techstars.
We provide working and meeting spaces, as well as a nice lounge all with super fast and reliable wireless Internet access. Still, many of our founders choose to work from their apartments or local coffee shops. It's up to you. Here's a full list of perks that Techstars companies automatically receive, worth hundreds of thousands of dollars. Basically, we'll help you get everything covered with minimal expense. We just want you to focus on creating a great product while you're here, and not have to worry about all this other stuff.
We provide the seed funding to get you going, but you may well need more funding to really make it. Near the end of the three month program, we'll organize an Investor Demo Day where angel investors and venture capitalists from all over the country will check out your technology and listen to your pitch. Usually we have about 200 investors there. We'll coach you so you're as effective as possible, and do everything we can do help get you follow on funding. We may also fund your company further ourselves in some situations. So far, about 75% companies have received follow on funding and/or immediately became profitable after Techstars ended. The average Techstars companies raises more than $2M after demo day.