World’s number one accelerator brand lands in Israel

There are tech accelerators galore around the world, but there’s only one Techstars – and last week, the most prestigious brand name in accelerators announced that it was opening an office in Tel Aviv.

“We’re expanding, moving beyond our city programs in Denver and other US cities,” said Greg Rogers, executive director, Techstars Barclays Global Partnership. “Now we are concentrating on partnering for specific industries. Tel Aviv has become one of the premier places in the world for financial technology, so we decided to open a branch here.”

Techstars has partnered with Barclays, the famed UK bank, to develop innovative financial technology solutions with Israeli start-ups, said Rogers. “It started with a program in London, in which we selected and worked with ten start-ups to develop their technology on payments, security, consumer banking, and more. They were so happy with the program that we eventually expanded it, first to New York and now to Capetown and Tel Aviv.”

All four cities represent a different “pillar” in fintech, with Tel Aviv a center for cyber-security blockchain technologies and more.

Start-ups accepted into the 13-week program will work with a large variety of mentors in the fintech industry, and be eligible for an investment of up to $120,000 – $20,000 just for being in the program, and an additional $100,000 convertible note (a loan that converts to equity when the start-up raises money or gets acquired).

But the most important aspect of the program – and what makes it a Techstars program – is “access to the largest entrepreneurial network in the world,” said Rogers. “We run 20 programs in 15 cities, and have a great relationship with enterprise, investors, and institutions. We can provide start-ups that work with us access to just about anyone they need to grow their business.”

Not many organizations other than Techstars can make such a claim. Founded in 2006, Techstars was one of the first accelerators, and is probably the most successful accelerator in the tech world in terms of size, the number of professionals its network encompasses, and the amount of money it has helped start-ups raise. The Techstars community currently includes more than 1,500 mentors and over 500 alumni companies. It operates multiple programs each year in Boulder, Boston, Seattle, Austin, Chicago, Kansas City, Los Angeles, New York, London and Berlin – and now, Tel Aviv, said Rogers.

Barclays, too, is a veteran institution in the financial sector – but just because the bank is some 300 years old (it was established in 1690 in London) does not mean that it is not cognizant of the role of innovation in banking. Quite the opposite, said Rogers.

“The bank’s current leadership is very driven by innovation, as they realize that competition for the best technology is key to leading in the digital future,” said Rogers. “The chairman, chief digital officer, and the technology officers are all former entrepreneurs themselves, and they are obsessed with tech advancement.”

For start-ups seeking to get into the program (the first round starts next March), Rogers has some tips. “In its admission and evaluation process, Techstars focuses almost solely on the team. Technology changes, focus changes, and start-up ideas change, but the cohesiveness and quality of the team, we find, is the only consistent predictor of success for a start-up. When choosing companies to include in the program, we’re more psychologists than tech people,” said Rogers.

The current security issues in Israel won’t affect the continuation of the program, either, said Rogers. “Israel was an easy decision for us. We may be a bit naïve, but we feel that tech can be an important driver of world peace. And Tel Aviv isn’t the only place in the world with security issues – they exist everywhere. There are risks everywhere, but we feel that it’s worth those risks to bring new, innovative technologies to the world – and help entrepreneurs achieve their dreams of success.”