Techstars raising $150 million fund
The capital would presumably be used to invest in accelerator participants.
In a filing with the Securities and Exchange Commission (SEC), Techstars has indicated plans to raise a $150 million fourth fund.
The Boulder, CO-based organization just finished Cohort 2 of the “Techstars Industries of the Future Accelerator” which is underwritten by Oak Ridge National Laboratory, Tennessee Valley Authority, and the University of Tennessee System.
According to the filing, the newest fund is named Techstars Accelerator 2024 L.P. and presumably will be used in the same way that the soon-to-be-completed fund has been: investments in participants in the more than 50 accelerators that Techstars offers around the world, including Knoxville.
According to an article in TechCrunch, companies that participate in a Techstars three-month offering receive $20,000 and a $100,000 convertible note in exchange for 6 to 9 percent of common stock, in addition to access to its network and mentorship, among other resources.