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Techstars is lay off 17 % of its workforce and will end its $ 80 million J.P. Morgan - plunk for AdvancingCities programme once the fund is completely deployed at the end of this class , TechCrunch has learn .
The AdvancingCities program , which launch in 2022 , saw the launch of accelerator programs across the nation in metropolis like Oakland , New York , Miami and Washington , D.C. with the goal of backing more divers founders .
J.P. Morgan patronise the programme with a dedication through December , but the family relationship between the bank and Techstars soured almost right away , asTechCrunch previously account . The bank was theorize to intrust to continuing the programme last summertime so Techstars could set off fundraising for another rung with the hope of deploy capital from the second round in 2025 . But it did n’t commit by that earlier deadline . As of our earlier report , the fate of around 20 Techstars employees who crop on the program was unclear .
“ In 2022 , J.P. Morgan announced the $ 80MM Advancing Cities Fund , put forward as a private position to invest in a Techstars gas plan focused on advancing equitable access to funding among various founders across the U.S , ” a J.P Morgan voice secernate TechCrunch . “ The investment trust is expected to be fully deployed by the terminal of this yr , as project . JPMorganChase stay committed to supporting across the country through the enlargement of its diverse director meshwork , individual investment political program and mesh capableness . ”
The news that the program was formally shut downwas reportedon Wednesday by The Information .
In an email about the layoff , Techstars co - founder and CEO David Cohen secernate staff that the startup throttle valve “ overbuilt and over hired . ” He said that most of the layoff would come in from engineering , support services and those working on sales and partnerships . He promised that those extend most accelerator plan would not be impact with the elision of the J.P. Morgan programs , specifically the AdvancingCities programme .
The intelligence comesduring a transformative yearfor Techstars . Techstars’now - former chief operating officer Maëlle Gavetstepped down in May , with Cohen stepping back into the office upon her departure . Wednesday’slayoff also follows a 7 % headcount reductionin January , as TechCrunch antecedently report .
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Techstars ’ scheme under Gavet was to descale into more programs and back more startups , but it was met withcriticism from thosein the investment community as the organization began before this year to restructure itself . Cohen somewhat addressed the criticisms in that email to staff today , tell that the firm would now “ give up focalize on scaling and shift all of our focal point to being better for founders each and every mean solar day . ”
Techstars declined further comment but head to Cohen ’s email which itpublishedon its site .
Note : This story was updated to summate a statement from J.P. Morgan .
