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Boulder-based Techstars has closed a $150 million fund to foster the growth of its newest investment vehicle, Techstars Ventures 2014.
The round, which marks the firm's third installment of financing, will allow it to invest in a network of companies at seed and Series A stages. This network includes startups emerging from its accelerator program, as well as companies founded and advised by Techstars alumni and mentors.
According to managing partner David Cohen, the funding will enable investments across a wide range of sectors and has already been channeled toward three companies: ad-free social network Ello, Internet-security startup Distil Networks, and Conspire, a service that facilitates professional networking.
It’s a sign of sweeping progress for Techstars Ventures – formerly known as Bullet Time Ventures – whose financing and size have mushroomed over the last few years. In 2009, the firm’s fund stood at just $5 million, with an additional $30 million in 2012. Furthermore, the Techstars brand has grown to encompass eight partner programs and seven locations.
“TechStars was only one or two programs a year ‘til 2010. The broader ecosystem is only a few years old,” Cohen told TechCrunch.
Graduates of the accelerator program have raised over $1.1 billion in venture capital, while companies under the mentorship of Techstars’ 1,500-plus advisers have received over $5 billion in investments, according to Cohen. Among the most notable of these companies is Uber, which Techstars financed in 2009 (and which holds the record for most venture capital raised at $2.8 billion).
In conjunction with the fund, Techstars Ventures has installed three new partners: Nicole Glaros, Jason Seats and Filtrbox founder and inaugural Techstars program graduate Ari Newman. Glaros and Seats will continue to run accelerator programs.
The accelerator program’s investment policy – seven to 10 percent equity for $118,000 in financing – will remain unchanged, enabling Techstars Ventures to contribute substantially more capital.
“Traditionally, we’ve made investments between a couple of hundred thousand and $1 million at the seed level. Now, at the Series A we’d be between $1 million and $2 million,” Cohen said.
The influx of financing for the firm follows a rise in overall venture fundraising, with funds collecting about $32.97 billion, the most since 2007.
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