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Earlier this week, a global early-stage tech startup accelerator and investor Tech stars announcement significant changes in its operations and strategy. These changes seem to have had an impact on his presence in Toronto.

Techstars plans to close some of its accelerators and move its headquarters from Boulder, Colorado, to New York, as part of a renewed focus on some of the world’s largest technology ecosystems, according to a statement from Techstars CEO , Maëlle Gavet. Gavet added that Techstars would continue to run programs in 30 other locations in addition to its core cities in 2024, but did not disclose which locations would be affected or its plans beyond this year.

Techstars Toronto’s long-time CEO Sunil Sharma confirmed to BetaKit that the accelerator is not accepting new applications at this time and is leaving.

By focusing on the largest tech ecosystems and “phasing out some accelerator programs in a few smaller venture capital markets,” Gavet said Techstars aims to ensure its entrepreneurs are “surrounded by the highest concentration of businesses”. [venture capitalists]startups, talents, mentors and support.

While Techstars Toronto isn’t closing immediately as a result of these changes, it has suspended its accelerator programming for the time being and its long-term future in the city remains to be determined, BetaKit has learned.

Longtime CEO Sunil Sharma confirmed to BetaKit that Techstars Toronto is not accepting new applications at this time and that he is stepping away from Techstars after seven years at the helm, but did not confirm if the accelerator would close its doors permanently. Sharma said he is currently considering what he plans to do next, but noted he intends to continue supporting the Canadian tech ecosystem.

Despite these changes, Sharma believes Canada will continue to be a priority for Techstars going forward, noting that Techstars has invested in 250 Canadian startups to date.

“I am confident that the number of Canadian companies supported by our many programs will continue to grow, as Techstars has proven that it strongly believes in Canadian founders and is actually increasing the overall number of investments it makes,” said Sharma. » said BetaKit.

GeekWire reported that Seattle and Boulder are among the accelerators that Techstars is closing. A memo obtained by GeekWire indicates that Techstars intends to focus its efforts on its accelerators in San Francisco, New York, Boston and Los Angeles.

According to Gavet’s statement, the changes are “the result of two years of internal analysis, planning and listening to our stakeholders.” Despite its reduction, Techstars said it still intends to support small ecosystems and founders around the world by incentivizing them to relocate to other cities and through its hybrid Techstars Anywhere program.

RELATED: Techstars Toronto celebrates 100 direct investments as an accelerator

Gavet did not respond at the time of publication to BetaKit’s requests for comment on the future of Techstars Toronto.

Speaking on background with BetaKit, several sources close to Techstars Toronto said they do not expect the Toronto accelerator to continue serving new cohorts beyond 2024 or at all, but believe that any cessation of its operations in the city could take some time.

Multiple sources in the Canadian tech ecosystem have expressed concerns to BetaKit regarding the long-term future of Techstars Toronto, given its impact over the past seven years and its importance to the local tech ecosystem.

Techstars Toronto’s impact on the local tech ecosystem over the past seven years has been undeniable. Last year, Techstars Toronto celebrated 100 direct investments in Canadian and international startups.

Techstars offers a three-month accelerator program to startups in more than 30 cities around the world, investing US$120,000, taking an equity stake in participating companies and providing them with mentorship and access to its extensive global network. It claims to be the most active pre-seed investor in the world, backing more than 4,000 fledgling technology companies to date.

Techstars Toronto spear in 2017 in partnership with Real Ventures, of Montreal, which launched its first program the following year. This partnership has since been concluded and the accelerator has been supported by Techstars. A global fund of 150 million dollars. Techstars is currently breeding a new third accelerator fund of $150 million.

The Toronto accelerator has supported and invested in a wide variety of Canadian technology startups, including Balance, Captain AI, Cinchy, Fable, Inkblot, KitchenMate and Tread. Techstars Toronto began increasing capacity in 2021 to increase the size and frequency of its cohorts.

The full statement from outgoing Techstars Toronto CEO Sunil Sharma follows below.

Techstars is one of the most active early-stage investors in Canadian history today. We have made approximately 250 direct investments in Canadian startups and I am proud to have led 100 investments through the Toronto program. That said, I will be leaving Techstars after almost 7 solid years supporting startups from Toronto, across Canada, and 15 different countries around the world.

Canada is a brand that resonates globally and represents an investment thesis in itself. The global diaspora is what makes us truly great and this trend will only get stronger from here on out.

I am confident that the number of Canadian companies supported by our many programs will continue to grow, as Techstars has proven that it strongly believes in Canadian founders and is actually increasing the overall number of investments it makes. My personal belief has always been that accelerators are useful for expanding networks and building connections and that it’s not just about money. Canadian founders often benefit from spending time in different countries to grow their business and meet new people.

At this time, Techstars Toronto is not accepting new applications. As for me, I am actively thinking about what comes next but I intend to continue helping the ecosystem.

Featured image courtesy of Techstars Toronto.