Entrepreneurs / Small Business  September 4, 2014

Techstars launches “equity-back” guarantee

Techstars is offering an equity-back guarantee to its start-up classes.
Techstars is offering an equity-back guarantee to its start-up classes.

BOULDER – Don’t feel like Techstars moved your startup forward? Now the Boulder-based accelerator program is offering an equity-back guarantee.

Consider it a seller’s remorse clause of sorts.

Cofounder David Cohen announced the new wrinkle on the Techstars blog on Thursday.

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“We firmly believe in the value of the Techstars accelerator program and in the long term value of our network,” Cohen wrote. “This makes it easy to take this step to ‘put our equity where our mouth is.’”

Techstars – which has expanded to 13 locations across the country since starting in Boulder seven years ago – gives participating startups $18,000 in seed money and 12 weeks of mentorship, plus access to its network of entrepreneurs and investors, in exchange for a 6-percent equity stake. The startups also have the option for a $100,000 convertible note that ups the equity stake.

For all startups beginning a Techstars program in 2015, they now have the safety net of the equity-back guarantee. At the end of the program, if a startup isn’t satisfied with the value of Techstars, that company has three business days to lower or eliminate Techstars’ equity stake by returning all or some of the seed money.

Cohen wrote that over the years there have been some startup founders who have been skeptical of the value of going through Techstars initially. Most, he said, got comfortable enough to take a chance on the program. And of those who did, Cohen said they’re never skeptical once the program ends.

“The equity-back guarantee completely removes this upfront concern that some may have,” Cohen wrote. “In the Techstars tradition of #givefirst, we’re proud to offer our equity back guarantee to ensure that every company we work with is satisfied with the value that we provide.”

Techstars is offering an equity-back guarantee to its start-up classes.
Techstars is offering an equity-back guarantee to its start-up classes.

BOULDER – Don’t feel like Techstars moved your startup forward? Now the Boulder-based accelerator program is offering an equity-back guarantee.

Consider it a seller’s remorse clause of sorts.

Cofounder David Cohen announced the new wrinkle on the Techstars blog on Thursday.

“We firmly believe in the value of the Techstars accelerator program and in the long term value of our network,” Cohen wrote. “This makes it easy to take this step to ‘put…

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