Was Techstars Worth It? The Good, The Bad & The Ugly

It’s been over a year since I was part of the Techstars New York City cohort of 2023. I can’t believe it’s already been a year.

Last year around this time, I stood on a massive auditorium stage in front of about 500 people, sharing my startup story under bright lights and hoping for loud applause.

It was a surreal experience, and being accepted into the Techstars program was a huge break for us as a startup, especially since we were still small and early in our journey.

The belief in us and the journey we went through with Techstars were monumental. It played a crucial role in where we are today.

Even a year after Techstars, we’re still here, still thriving, which I think is a great sign for us as a startup.

Right after the Techstars cohort last year, I released a video about my experience, and many startups and individuals reached out to me, asking if what I shared was my true experience.

Now, a year later, I wanted to reflect and share some thoughts—looking back, what went well and what didn't. I’ll highlight three positives that came out of Techstars and three aspects that weren’t so great. Let’s start with the good.

The most significant positive from being part of the Techstars program was the team at Techstars, led by Jordan, the Managing Director, Andrew, a Principal, and Elliot, along with the supporting staff like Julia and Michael.

They were incredibly helpful, playing a huge role in supporting us. They not only gave us valuable advice and spent time with us during the program, but even after graduating, they continued to invest their time, social capital, and personal networks to support our fundraising, customer acquisition, and growth efforts—not just for me, but for all the startups in our cohort.

They truly went above and beyond, which was a major advantage for us as a startup. Since they were also entrepreneurs, their insights were valuable and unique, and their network was a great support system. This was undoubtedly the biggest benefit of being part of the program.

The second benefit was access to the other entrepreneurs in the Techstars community and the networks of other startups.

Coming together in person after the pandemic allowed us to learn from each other’s working styles, quirks, and challenges. This sense of community and openness played a big role in motivating me and my team to keep pushing forward.

The third positive was the boost in morale for me, my team, and our early investors. Being selected for one of the most competitive accelerators, which Jordan said is even harder to get into than Harvard Business School, was a great validation.

It was an incredible feeling to be chosen after a rigorous interview process, based on our potential and the idea we were working on.

Now, moving on to the challenges. First, it’s expensive. Techstars, like most accelerators, takes a significant equity stake in your business.

A common question I get is whether it's worth giving up such a large percentage of your business. It’s a tough decision, especially with the uncertainty involved—there’s no guarantee of success, and parting with a portion of your business is painful. Even later, when you look at your cap table, it can be tough to see. While you gain valuable access, it’s still a hard choice to make.

Second, the initial excitement of being a Techstars company fades as your startup grows and time passes. This is true for any prestigious institution or program. The biggest boost comes right after the demo day, and over time, that momentum naturally slows.

If you’re part of an accelerator, it’s essential to keep working hard to leverage the resources available to you continuously.

The third challenge for me was that the support we received heavily depended on the generosity and strength of the New York City managing team.

While the local team continued to support us, I believe that Techstars as a whole could do more to support startups beyond the cohort.

As startups grow and their needs evolve, it would be beneficial if Techstars had more centralized support for fundraising and other growth initiatives.

For instance, while Techstars has a follow-on investment option of about $150,000 to $200,000, it would be great if they had a larger fund or a syndicate to support startups through later stages like Series A or B.

They do offer some ongoing support through programs like the Techstars portal, which provides access to deals like AWS credits and other sponsor perks.

But as time goes on and the initial excitement fades, having a more extensive level of support from the central Techstars organization would be valuable. This could help startups continue to thrive without relying solely on the connections from their specific cohort.

In conclusion, Techstars was a massive boon for Xena. I would do it all over again, without a doubt.

For many startups, being part of an accelerator like Techstars can be a game-changer, and the positives far outweigh the negatives.

So, for those reaching out to me, I’d definitely recommend considering it, even though it’s costly. It's crucial, however, to understand the importance of the managing director and team leading your cohort.

The support you receive is closely tied to their commitment. We’ve been fortunate in that regard, and I wouldn’t hesitate to go through the experience again.

Akhil