Startup accelerator Techstars is reducing its workforce by 17% and discontinuing its $80 million Advancing Cities program, which was backed by JP Morgan.
Launched in 2022, Advancing Cities aimed to invest in over 400 companies led by Black, Hispanic, Latino, Indigenous American, and Pacific Islander entrepreneurs in nine US cities, including Oakland, New York, and Miami. However, the program will cease operations once JP Morgan’s sponsorship concludes at the end of the year.
According to TechCrunch, the bank opted not to extend the program last year, preventing Techstars from initiating a second round of fundraising. A JP Morgan representative stated, “The fund is expected to be fully deployed by the end of this year, as planned. JPMorganChase remains committed to supporting diverse managers, private investments, and community engagement nationwide.”
Earlier this year, TechCrunch reported tensions between JP Morgan and Techstars regarding the definition of diversity in their support for entrepreneurs.
In an email to employees last week, Techstars CEO David Cohen confirmed the 17% workforce reduction, noting, “It has become clear to me that we overbuilt and over hired to support our ambition to scale.” The cuts will mainly affect areas such as engineering, portfolio services, and sales and partnerships, while accelerator teams will mostly remain intact, except for Advancing Cities, which employs about 20 people.