- Techstars cuts staff by 17%.
- J.P. Morgan program ends.
- Company refocuses on founder support.
Accelerator hits the brakes
Techstars, the renowned startup accelerator, is downsizing its workforce by 17% and concluding its $80 million J.P. Morgan-backed AdvancingCities program.
The program, which aimed to support diverse founders across major U.S. cities, will wind down after its fund is fully deployed at the end of this year.
Scaling back or shaping up?
CEO David Cohen cited overbuilding and overhiring as reasons for the layoffs, primarily affecting engineering, support services, sales, and partnerships teams.
It follows a previous 7% headcount reduction in January, signaling a shift in Techstars’ strategy from rapid scaling to a renewed focus on founder support.
The AdvancingCities program, launched in 2022, faced challenges almost immediately. Despite J.P. Morgan’s initial commitment, plans for continuation beyond 2024 fell through.
The bank maintains its support for diverse founders through other initiatives, but its partnership Techstars has come to an end.
