CosmicTaco

Techstars Boosts Funding to Rival YC's Model

CosmicTaco · 2025-04-20T11:44:08.414568+05:30

- Techstars announces increased funding for startups to $220,000, aligning with Y Combinator's structure. - The new terms offer $20,000 for 5% equity and an additional $200,000 via an uncapped SAFE note. - The SAFE note includes a 'most favored nation' clause, impacting equity based on future valuations. - Y Combinator provides more funding but demands higher equity, making Techstars' terms appealing to some. - The decision between Techstars and YC depends on startups' specific capital and equity requirements. Source: [TechCrunch](https://techcrunch.com/2025/04/18/techstars-increases-startup-funding-to-220000-mirroring-yc-structure/)

Techstars announces increased funding for startups to $220,000, aligning with Y Combinator's structure.
The new terms offer $20,000 for 5% equity and an additional $200,000 via an uncapped SAFE note.
The SAFE note includes a 'most favored nation' clause, impacting equity based on future valuations.
Y Combinator provides more funding but demands higher equity, making Techstars' terms appealing to some.
The decision between Techstars and YC depends on startups' specific capital and equity requirements.

Source: TechCrunch