Christine Lu Hong shares what every founder should know about Techstars
How to pick an accelerator, how to stand out, what makes Techstars special
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Accelerators are now nearly ubiquitous in the startup ecosystem, with over 3,000 programs operating worldwide. Most offer funding in exchange for equity, along with mentorship to guide startups through their development. But not all accelerators are created equal, and Techstars has continued to stand out as one of the most prominent and prolific among them.
Founded in 2006 in Boulder, Colorado, Techstars has supported over 4,100 companies with a combined market cap of $106 billion and operates programs globally. The organization has gone through significant changes recently, including what might be considered a return to fundamentals, with a narrowing of focus on its top-performing cities, and with founder David Cohen resuming the helm as CEO.
In New York, Techstars has had a presence since 2011, quickly becoming a cornerstone of the NYC startup ecosystem. The program is currently led by Managing Director KJ Singh and Investment Manager Christine Lu Hong. This Fall, the duo will also run Techstars New York City powered by J.P. Morgan. Recently, we had the opportunity to interview Christine to give founders more insight into how the Techstars programs work, how the application and selection process works and what else founders should know.
Here are the key insights from our discussion - as well as a video of the full conversation.
Approach the Techstars application process as you would build a customer relationship
The NYC program typically receives over 1,000 applications for just 12 spots, and founders apply year-round from all over the world, so it can be hard to stand out. The Techstars team is quite accessible, so keeping them updated on your progress over time helps them build confidence in your ability to grow your startup. Just like in any other aspect of life, building relationships and maintaining strong, regular communication is more effective than getting lost in the crowd of 1,000 applicants.
Christine recommends really getting to deeply understand the differences between the programs Techstars runs since they all run somewhat independently - focus on the ones that will be most aligned with you, get to know the team, and keep developing those relationships before, during and after the application process.
The 6 criteria Techstars uses to evaluate applications:
Team
Team
Team
Market
Product
Traction
Clearly, the strength of the team is the most heavily weighted criteria used to evaluate an application. A strong team is considered more crucial than the market itself, as capable teams can pivot to different markets as they progress on their startup journey.
The other criteria are important as well, of course - but the most important thing is a compelling team tackling a problem or space that they know uniquely well.
Techstars stands out by creating a personalized experience for founders
Many accelerators focus more on a more classroom-style approach, but Techstars makes its programming optional for founders, allowing founders to focus their time on the sessions that matter most on an individual basis.
Instead, Techstars heavily emphasizes its mentorship program, matching founders with mentors who have relevant expertise and can provide more custom advice. Because the Techstars program is so well-established, their professional network is vast and deep. And if founders need help in a specific niche, the team actively recruits mentors that can help.
Additionally, Techstars provides "associates"—free, dedicated resources that assist founders throughout the program. This can be a significant boost, since each associate only works with 2-3 startups, and they are trained to support on the business side in any way needed.
Other advice / thoughts on accelerators
When considering an accelerator, it's important to conduct thorough due diligence by speaking with other founders who have successfully worked with the specific investment team running the program. Ask for referrals from the program—be cautious if they are unwilling to provide a broad list of references.
Accelerators typically prefer full-time founders, as it demonstrates commitment to both the program and the startup. However, some part-time founders have successfully been accepted by indicating in their application that they will commit full-time upon acceptance.
If you are pre-product, joining an accelerator might not be the best choice. Accelerators are designed to take companies with at least a minimum viable product (MVP) and "accelerate" their growth by connecting them with mentors, investors, and customers. Participating in an accelerator may not be beneficial if you're still in the building phase - and you might get more out of the experience if you can at least get to MVP before joining.