Boulder, CO (PRWEB) March 17, 2010
As TechStars begins its fourth year, the start-up seed accelerator has issued a comprehensive report detailing how its unique approach has helped to launch nearly 40 new software and technology ventures.
“When you’re a start-up company betting on your future, there is only one question that really matters: how do you produce results?” said David Cohen, TechStars CEO and one of the four founding members of the program. “Our first comprehensive performance report highlights a history of success, and proves out the TechStars model as one of the most effective ways to start new companies.”
The results report includes overall success and failure rates, and individual funding and acquisition data on each of the past TechStars companies, including current status, funding raised, acquisition information, and number of people currently employed.
Highlights from the report:
- In three years, about $16.5 million in seed-stage funding has been raised.
- 27 of 39 (70%) TechStars companies have either raised outside funding after the program or bootstrapped to profitability.
- TechStars companies currently employ 156 people.
- Four of the first ten companies from the inaugural 2007 class have already achieved positive exits.
- Since inception, several companies have already successfully exited to notable acquirers such as AOL, Automattic (WordPress) and Jive Software.
- The most recent group of companies resulted in seven VC-led follow-on funding rounds and three additional angel-led rounds.
“TechStars has a proven, results-oriented methodology,” said Cohen. “We believe that by releasing complete historical data on our companies, it will help others to understand the impact that TechStars is having on business, on emerging technology and on entrepreneurism.
"TechStars has always been open source,” explained Cohen. “We've released our model seed funding documents and we have been very open with other programs across the country and around the world that hope to replicate TechStars' mentorship-driven and community-oriented approach. We fundamentally believe that TechStars is great for the community, for the entrepreneurs and for early stage investors.”
For a full copy of the report go to http://www.techstars.org/results.
Applications to the TechStars program in Boulder this summer are open until March 22. Visit http://www.techstars.org/apply/ to apply.
Based in Boulder, TechStars is a mentorship-driven investment fund and entrepreneurial start-up incubator helping to launch successful technology companies in Boulder, Seattle and Boston. Since 2007 TechStars has launched 39 companies and help raise nearly $17 million in seed-stage funding. Selected companies receive up to $18,000 in funding, three months of intensive mentorship from successful entrepreneurs and investors, rent-free office space and access to more than 40 educational opportunities. Every year TechStars’ "startup boot camp" for software entrepreneurs typically receives hundreds of applications for the 10 available spots. The programs culminate with “Investors’ Days” and a chance for all participating teams to present their platforms to some of the country’s leading venture and angel investors.