About this programme
Techstars is a global startup accelerator network. Every company accepted into a Techstars accelerator program is offered the same standard day-one investment terms, described on this page, regardless of which vertical or city program it joins.
The offer is $220,000 total, split between two instruments: $20,000 through a Post-Money Convertible Equity Agreement (CEA) for 5% common stock, and $200,000 through an uncapped Most Favored Nations (MFN) Safe. Techstars accelerator programs in Asia-Pacific offer a $100,000 uncapped MFN Safe instead of the standard $200,000, for a $120,000 total day-one investment.
Techstars structures the deal around common stock rather than preferred stock, on the stated rationale that this aligns founder and investor outcomes instead of giving the investor a liquidation-preference hierarchy ahead of the founders.
There is no fee to join a Techstars accelerator program — the investment is exchanged only for equity under the terms below, not for cash paid by the company.
How it works
The $20,000 CEA converts into common stock equal to 5% of the company's fully diluted equity (including the option pool) when the company completes a priced equity round of at least $1,000,000. It converts after other Safes and convertible instruments have already converted alongside that round.
The $200,000 MFN Safe is uncapped: it carries no pre-set valuation cap. Instead it automatically adopts the most favorable terms — the lowest valuation cap, or the best discount — of any other Safe the company issues between the program's start and the priced round that triggers conversion.
Techstars gives an illustrative example: a $200,000 uncapped Safe converting at a $20M pre-money valuation would convert into roughly 1% additional ownership, on top of the 5% from the CEA.
Alongside the two investment instruments, Techstars and the company sign a side letter establishing pro rata investment rights for Techstars in future rounds, digital-asset rights, drag-along rights, and ongoing information-sharing obligations (operating metrics, burn rate) that continue after the 3-month program ends.
Companies must be incorporated as a US corporation or an approved foreign equivalent/holding structure to receive the investment. Companies incorporated in a jurisdiction Techstars does not directly support (India is named as an example) need to reorganize into an approved structure — a "flip" — before the investment is made; Techstars states it assists with this process.
Who can apply
The standard terms apply to companies accepted into a Techstars accelerator program cohort; acceptance is by application and selection, not automatic.
The company must be able to incorporate as (or convert to) a US corporation or an approved foreign-equivalent/holding structure to receive the investment — this is a hard prerequisite for the CEA and Safe to be issued.
How to apply
- Apply to a specific Techstars accelerator program (by vertical or city) through techstars.com/accelerators; each program runs its own application window with its own deadline.
- Complete the online application — Techstars states this typically takes 30 to 60 minutes and recommends completing it together with any co-founders.
- Techstars reviews applications after the window closes; Techstars states it does its best to notify applicants receiving an interview within four weeks of the program's application deadline.
- Companies accepted into a program join the 3-month, mentorship-driven accelerator cohort and receive the day-one investment described on this page as part of acceptance.
Frequently asked
How much does Techstars invest and in what form?
Techstars invests $220,000 total in each accepted company: $20,000 through a Post-Money Convertible Equity Agreement (CEA) for 5% common stock, and $200,000 through an uncapped MFN Safe. Asia-Pacific programs offer $100,000 through the Safe instead, for $120,000 total.
Does the company give up 5% equity immediately?
The 5% from the CEA doesn't convert into shares until the company closes a priced equity round of at least $1,000,000 — it isn't issued as stock on day one. The Safe converts at the same trigger, on whatever terms are most favorable among the company's other Safes at that point.
Is there a valuation cap on the Safe?
No. The $200,000 MFN Safe is uncapped. It instead takes on the most favorable terms — lowest cap or best discount — of any other Safe the company issues before its priced round, which is what "Most Favored Nations" (MFN) means here.
Does it cost anything to join a Techstars accelerator?
No. Techstars states there is no fee, meaning no monetary cost to the company, to join an accelerator program. The relationship is investment-for-equity under the CEA and Safe, not a paid program.
Can a company incorporated in India take the investment?
Not directly in its Indian entity. Techstars requires the receiving company to be a US corporation or an approved foreign-equivalent/holding structure, so an India-incorporated startup would need to reorganize ("flip") into an approved structure first; Techstars says it assists with that process.
What rights does Techstars get beyond the equity itself?
A side letter signed alongside the CEA and Safe gives Techstars pro rata rights to invest in the company's future rounds, digital-asset rights, drag-along rights, and ongoing information rights (operating metrics and burn rate) that continue after the 3-month program ends.
How long is the Techstars accelerator program itself?
Techstars describes its accelerator programs as three months of intensive, mentorship-driven support, run in specific verticals (such as health, finance, and space & defense) or specific cities, each with its own cohort and application cycle.
Reviewed 2026-08-16. Programmes change — confirm current eligibility, amounts and deadlines on the official page before you apply. CapEasy is a private consultancy and is not affiliated with any government authority.