According to recent filings with the Securities and Exchange Commission (SEC), startup accelerator Techstars is in the process of raising $150 million for its new fund. The initiative comes as the deployment period for Techstars Accelerator 2021, its third institutionally-backed fund is set to conclude later this year.

While specific details regarding the utilization of the funding remain undisclosed due to regulatory limitations, the new fund, named Techstars Accelerator 2024, is expected to be primarily allocated for accelerator-stage and post-accelerator investments, similar to its predecessors.

Interestingly, Techstars' current fund has been exclusively focused on accelerator-stage investments, in contrast to previous funds which supported startups throughout both the accelerator stage and subsequent follow-on investments.

Fund 3's objective was to support over 800 pre-seed and seed startups participating in Techstars' global accelerator programs by the end of 2023. With its wide range of accelerator groups, Techstars has already provided backing to more than 3,500 early-stage startups operating in various sectors, including health tech, fintech, web3, and clean tech.

Startups selected for Techstars' three-month program receive a $20,000 investment and a $100,000 convertible note in exchange for a 6% to 9% stake in common stock. In addition to these financial benefits, they gain access to Techstars' extensive network, mentorship opportunities, and other valuable resources.

READ ALSO - OPay and MoniePoint Lead Nigeria's Agency Banking Market

Founded in 2006, Techstars operates over 50 accelerator groups in major cities worldwide, including New York, Los Angeles, London, Boston, Tel Aviv, and Lagos. Last year, Techstars launched its Lagos arm in collaboration with ARM Labs as part of its strategic expansion plan for specialized and general accelerator programs on a global scale.

To further support its growth trajectory, Techstars recently introduced additional funds to enhance its investment endeavors. Notably, it unveiled Rising Stars, a fund specifically dedicated to early-stage startups that are not yet eligible for its accelerator programs. Through this initiative, Techstars offers $100,000 investments in exchange for equity ranging from 7% to 10%.

Furthermore, the accelerator established the Advancing Cities Fund, a collaboration with JPMorgan, with a total worth of $80 million. This fund aims to support over 400 startups founded by individuals from diverse backgrounds in nine cities across the United States.