Techstars has announced an increase in funding for startups to $220,000, effective for its fall 2025 batch.

This new investment amount is $100,000 more than what Techstars previously offered.

The funding structure includes $20,000 for 5% equity in the startup and an additional $200,000 through an uncapped SAFE note with a 'most favored nation' clause.

The SAFE note allows Techstars' ownership percentage to depend on future valuations of the startup; for instance, if the startup is valued at $10 million, Techstars would hold a total of 7% equity.

The choice between Techstars and Y Combinator's offerings depends on a startup's capital needs, as YC provides more than double the funding but requires a greater equity share.

Techstars' funding structure now closely resembles that of Y Combinator, which increased its funding to $500,000 three years ago, consisting of a $375,000 SAFE note and $125,000 for 7% equity.