Techstars Washington DC Powered by J.P. Morgan

Techstars Washington DC Powered by J.P. Morgan focuses on startups that can benefit from tapping into the unique strengths of DC’s innovation and startup ecosystem including our tech talent and diversity, and being a national and global center for policy making. Sector focuses include: health and wellness, education, finance, government and civic engagement, cybersecurity, and more. Open to founders of all backgrounds, the program is designed to provide equitable access to funding and support for Black, Hispanic and Latino, Indigenous American and Pacific Islander entrepreneurs. Through game-changing investment and community partnerships, together we will take steps towards dismantling institutional, structural, and systematic barriers that often limit opportunities.

You may be wondering: what kind of companies does Techstars invest in? And what stage are they typically at?

Short answer: It doesn’t matter what kind of stage you’re at — as long as you’re ready to accelerate your company, and you have good answers for these key questions:

1. Why are you and your founders the best people in the world to solve this problem?
2. Is there a market for the problem you’re solving, and how well do you understand it?
3. Why is this the right time for this solution to solve this problem?

We’ve accelerated teams that came into our programs with zero revenue, and we’ve also accelerated teams that came in with millions of dollars in revenue. The common thread between all those companies is the stellar founders, who could prove that they were the best people for the job, and that there was a real market that they could capture.

Later in the process, we’ll want to get to know you and understand why you think your team has the unfair advantage over all the other companies out there. Techstars wants to see what you’ve accomplished in the past, how long the team has been together, and how well you work together.

We base our decision-making on the following criteria (ranked in order of importance), when we’re going through the selection process to pick the 10 companies we’ll work with in each program:

1. Team
2. Team (because it’s that important)
3. Team (yes, we’re re-emphasising this because it’s incredibly important)
4. Market
5. Traction
6. Idea

The big takeaway here is that the ‘team’ component is the most important. Out of the thousands of the applications we receive every year, the ones that stand out showcase a team that has what it takes to get the job done. So whether it’s their first time as founders straight out of college or much later on in their life — or anywhere in between — it’s really about the individuals themselves, and how they demonstrate their persistence, their ability to learn, and why they’re the best people to make this particular company succeed. 

"Market" means: is there a sizable market right now? It’s not just about how big the market appears to be but is now the right time to enter it? What signals have you identified that it’s growing or will be in the future?

Traction can be many different things. You don’t necessarily need to have revenue, paying customers, or even signups — but you must have some form of validation that you’re building something people want. Perhaps that’s a prototype, survey responses that validate your core assumption, or interest from corporations who want your solution to their problem.

And then there’s the idea. It may be the least important of the six, but it’s still important. More important, however, is the fact that ideas can change over time based on data and feedback. We’ve seen companies pivot during the program — especially during the COVID-19 pandemic or other moments of sudden change.

What investments does Techstars make in its accelerator portfolio companies?

Techstars provides accelerator portfolio companies with access to financial, human, and intellectual capital to fuel the success of their business. 

Techstars contributes $20,000, which is commonly used as a stipend to support living expenses during the program, and in return receives 6% equity of the company (on a fully diluted basis, issued as common stock) until the company raises a priced equity financing of US $250,000 or more (a “Qualified Financing”). However, if a company conducts a Network Launch using distributed ledger technology (i.e. a blockchain initial coin offering, token event, etc.), then Techstars will also receive 6% of the Token Reserve (i.e. the tokens “held back” for the founders and the company at Network Launch).

Additionally, upon acceptance to a Techstars mentorship-driven accelerator, every company is offered an optional $100,000 convertible note.

What other benefits do I receive from a Techstars mentorship-driven accelerator?

• Access to Techstars resources for life;
• Acceleration in a 90-day Techstars mentorship-driven accelerator program with personal mentorship and office space;
• Lifetime access to the Techstars worldwide network of entrepreneurs, including more than 10,000 mentors, 10,000 investors, 1,600 alumni companies, and over 200 staff members;
• Access to over $400k of cash equivalent hosting, accounting, and legal support—plus other credits and perks worth more than $1M;
• Demo Day exposure and other investor connections.

Historically, on average, Techstars companies go on to raise more than $2M of outside capital after the program. We believe our stats speak for themselves.

What else does Techstars provide? Office space, internet, legal, hosting, etc.?

We provide working and meeting spaces, as well as a nice lounge, all with super fast and reliable wireless Internet access. 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.