As Colorado’s preeminent startup accelerator Techstars officially acknowledged this week that its headquarters is leaving Boulder in favor of New York, local tech founders and other supporters felt a sense of loss — and a little hurt.
“I’ve exited a market before (sorry, Seattle) and I know that it’s not easy to make those calls. But the thing you don’t do is call it ‘bittersweet.’ It’s just bitter for those that are most closely impacted in the community,” Liz Giorgi, cofounder of Denver content studio Soona and a Techstars graduate of 2019, said on X.
Techstars hosted its first business accelerator in 2007 in Boulder with 10 startups who hung out for three months networking, tweaking business plans and hoping to raise some capital. Some 17 years later, the Boulder company has seen more than 4,000 startups and 9,000 founders go through its programs worldwide. Some in the global community may not have even realized that Techstars was headquartered in Boulder.
Three years ago, the company hired a CEO who lived in New York so most of the executive team has been there for a few years, said David Cohen, one of the original quartet of cofounders, which includes Gov. Jared Polis.
Whether or not the rest of the Boulder and Denver tech entrepreneurial community realized what was going on, some are now thinking about what’s next.
“Techstars leaving Boulder is a huge opportunity to fill a void. But, what should we fill it with? Should the new thing look like Techstars did back in the day? Should it be many smaller things?” asked Yoav Lurie on X.
Lurie, who founded Simple Energy and was in the Techstars Entrepreneurs in Residence, posted an online survey for folks interested in helping build what’s next for local founders.
“I’m getting lots of responses. There is a tremendous amount of interest in breathing more life into the Boulder startup community. It’s been clear for some time that COVID, the shift to remote work, the increase in housing prices (and decrease in supply) has hurt the startup community in Boulder,” Lurie said.
He said he moved to Boulder in 2011 because of the startup community. It’s also why he stayed.
“We built our company and families here because of them. My biggest hope is that Techstars leaving Boulder makes room for new initiatives to spring up,” he said. “Maybe those will look like Techstars or maybe they’ll look radically different.”
Techstars isn’t leaving Colorado. The company said it recently opened a new office in downtown Denver and it’ll still sponsor Boulder Startup Week and the founder community. But it is ending its accelerators in Boulder and Seattle to focus on core markets of San Francisco, New York, Boston and Los Angeles. A virtual “Techstars Anywhere” will also continue.
Yeah, that’s not the same thing, said Danny Newman, whose tech beacon company, Roximity, went through Boulder Techstars in 2012. Newman may have been the person to get Techstars in motion back in 2006 when he shared an essay by the founder of Y Combinator with Cohen about Boulder’s potential to become another Silicon Valley. Cohen reached out to ask about replicating the tech accelerator, but Y Combinator wasn’t interested. So, Cohen asked the Colorado community, “Who’s in?”
“I’m super bummed and it definitely feels like the end of an era. The reason Techstars felt different was because it WASN’T in the major tech hubs,” said Newman, who likes to keep it local and now owns My Brother’s Bar and the Mercury Cafe in Denver. “There are a few of us teaming up to come up with some ideas for sure!”
➔ Lots of memories and shared resources: Techstars had a big impact in Boulder (and Denver). Shared thoughts by past leaders (Added Feb. 26, 2024):
- Former Techstars managing director Natty Zola, now a venture capitalist at Matchstick Ventures, blogged about the impact of Techstars on his life and also shared a plethora of resources for founders. >> Read
- Nicole Glaros, former chief innovation officer at Techstars, called the company “a gift, not just to me, but to all the early communities.” >> Read
➔ Techstars CEO responds to questions and criticism. CEO Maëlle Gavet told TechCrunch the company has about 300 employees after a recent reorganization “where a few people were exited,” she said. Meanwhile, I’m still waiting for an answer of how many Techstars staff will remain in Denver after the last Boulder cohort wraps this year.>> TechCrunch
➔ Earlier: Techstars moving HQ out of Colorado and ending its Boulder accelerator
Meanwhile … Denver in 71st place for tech?
Denver, normally a highly rated city for tech workers, ranked 71st in the “100 Top Tech Cities in the U.S.” list by Cloudwards, an online reviews site. Authors rated cities based on mobile internet service, livability, education, innovation and tech community.
Denver scored highest for education and career opportunities at No. 20, and lowest for internet coverage, at No. 89. However, livability — a mix of cost of living, safety and IT salaries — was quite low, too.
“This finding surprised us as well,” said Luarda Gjata, with Cloudwards. “Denver’s ranking at #71 is primarily due to its performance in the livability category, where it ranks 88th. This indicates a higher cost of living, elevated crime rates (with a crime rate of 70.02 per 100,000 residents, exceeding the national average), and comparatively lower IT salaries compared to many other cities in our research.”
The report also dinged Denver’s slower mobile internet speeds at 140.82 Mbps which “fall short compared to many other cities.” Fiber internet coverage is also limited to 53%, and the cost of internet services is relatively high at $91.
Other Colorado cities ranking in the top 100 include Colorado Springs, at 76th, and Aurora, at 78th.
In the number one spot? New York, which scored the highest for its tech community. You can complain here.
Sun economy stories you may have missed
➔ Will AI replace Colorado teachers? Here’s what experts say. Colorado schools are experimenting with artificial intelligence in the classroom, figuring out how to use the technology to enhance — not replace — student learning. >> Read
➔ Beef, quality-stamped by an in-person grader, may soon be graded by someone looking at a picture. The USDA says its Remote Grading Pilot for Beef could give small packers and processors a leg up they desperately need. >> Read
➔ A new — and much gentler — property tax hike is proposed for Colorado short-term rental properties. Rep. Shannon Bird says her House Bill 1299 “makes more sense” than Senate Bill 33, which would quadruple property taxes on short-term rental properties rented for more than 90 days a year. But it faces uncertain odds. >> Read
➔ State funding could be withheld from Colorado cities that don’t tie housing to transit under new affordability push. The measure, House Bill 1313, is a key piece of Democratic Gov. Jared Polis’ plans to address the state’s housing shortage and combat climate change. >> Read
➔ Nurses for medically fragile kids are underpaid and hard to find. Parents want the state to step in. Colorado’s Medicaid reimbursement rates for private duty nurses who provide in-home care for children and adults are about $9 per hour less than the national median. >> Read
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Other working bits
➔ Gig drivers want to know how much Lyft and Uber charge for rides. The proposed Senate Bill 75 seeks greater transparency for gig workers who drive for transportation network companies. In a Senate hearing Tuesday, drivers testified that knowing how much customers pay for a ride would help them make an informed decision on whether to accept a request. Many complained that payments had been reduced and they don’t know why.
“We’re being treated like employees when it favors them and we’re being treated as independent contractors when it favors them. Either way, it favors them,” testified a driver named Eric.
Representatives of Uber and Lyft said the bill would lead to an unprecedented amount of data collection. “Colorado will be collecting more data on rideshare than essentially anywhere else in the country,” said Jon Walker with Lyft. The bill was referred to appropriations. >> Read bill
➔ Tax credits for Colorado’s quantum realm. The state incentive to provide tax credits and loan guarantees to companies involved in quantum technology was introduced Wednesday at the state legislature. The bipartisan bill would offer $44 million in refundable state income tax credits and $30 million to guarantee loans to startups. Even if House Bill 1325 passes, it’s contingent on the state getting a federal grant of up to $75 million to help build out a quantum hub in the Boulder area, as previously reported. >> Earlier
➔ United’s Flight Training Center in Denver opens. In less than two months, United Airlines has hired 300 new pilots. Last year, it hired 2,300. Now, there’s an expanded flight-training center to get them up to speed. The 150,000-square-foot facility has been in the works for a few years and is the eighth building at its Central Park campus in Denver. In a news release, United said it invested more than $145 million into the new facility, which would be supported by 370 new employees. >> Story by Denverite
➔ Up to $200 million available for apprenticeships. That’s part of the second round of the Apprenticeship Building America Grant Program from the U.S. government. Colorado has previously received federal grants to expand its support of registered apprenticeships. >> Find a program
Thanks for sticking with me for this week’s report. Remember to check out The Sun’s daily coverage online. As always, share your 2 cents on how the economy is keeping you down or helping you up at cosun.co/heyww. ~ tamara
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