Episode Summary
Executive Summary: Jason Calacanis and Techstars CEO/cofounder David Brown discuss how COVID-19 is forcing accelerators, startups, investors, education, and work itself to go virtual. Brown explains what Techstars learned from years of running Techstars Anywhere, why smaller cohorts and strong mentorship matter, how founders should think about fundraising and pivots, and why the pandemic will likely create major new companies and accelerate global entrepreneurship.
Main Topics: Techstars’ virtual accelerator model and lessons from Techstars Anywhere: Brown explains that Techstars tested remote acceleration years before the pandemic, learning that occasional in-person bonding matters, virtual programs are more inclusive, and remote demo days can scale globally. COVID-19’s impact on startups and the economy: The conversation frames the pandemic as a massive disruption with clear winners and losers, forcing founders to reassess assumptions, pivot quickly, and solve newly urgent problems. Fundraising, demo days, and investor behavior in a remote world: Brown and Calacanis debate whether investors need in-person meetings, how Techstars handles fundraising without strict rules, and why authentic business-building matters more than manufactured FOMO. Accelerator design: cohort size, mentorship, and founder coachability: Brown argues that 10 companies per class is the right size to preserve attention and that mentor quality should be judged by founder feedback, while coachability is a key signal for success. How the pandemic changes markets and opportunity areas: They discuss which spikes are temporary versus structural, highlighting telemedicine, e-commerce, remote communication, and education as likely lasting shifts. Global entrepreneurship beyond Silicon Valley: Brown says entrepreneurship is global and points to India, Berlin, Scandinavia, Singapore, and other ecosystems as increasingly vibrant, with COVID acting as an accelerant. Techstars’ business model and long-term future: Brown explains that Techstars is a profitable, multi-revenue business with investments, sponsorships, and corporate partnerships, and that becoming public is a possible but not near-term option.
Key Arguments: Techstars’ remote model was validated before COVID and is now an advantage because it already solved many of the operational problems of virtual acceleration. A hybrid or remote-first accelerator can broaden access for founders who cannot relocate because of family, geography, or finances, which may improve the quality and diversity of applicants. In-person bonding still matters; Brown believes at least one or two live gatherings strengthen trust and cohort cohesion. Fundraising can still happen remotely, but investors usually want to know founders personally; the pandemic merely accelerates a trend already underway. Accelerators should not force artificial fundraising rules or game-like behavior; founders should build real companies rather than fabricate urgency for Demo Day. Cohort size matters because attention is the main scarce resource; too many startups dilute mentoring quality and reduce outcomes. Mentor effectiveness should be determined by startup feedback, not mentor prestige or availability alone. The pandemic creates both severe disruption and major opportunities; businesses tied to travel may suffer, while telemedicine, remote work, and logistics/consumer convenience tools may surge. Not every spike is permanent: e-commerce and delivery adoption may persist, but some pandemic-driven demand surges, like toilet paper, are temporary. Higher education may face structural pressure because many students will question paying full tuition for remote classes and reduced campus experiences. Entrepreneurship is global and culturally stronger in places like India, where there is intense ambition and technical talent. Founders must be coachable and resilient; prior success or experience can become a weakness if it turns into ego and resistance to feedback.
Data Points: Techstars graduates: Over 2,000 - Brown says Techstars has more than 2,000 graduates to date. Techstars global locations: Almost 50 (49 mentioned) - Brown says Techstars operates in nearly 50 cities/locations worldwide. Techstars annual startups: About 500 companies per year - Techstars runs roughly 10 companies per class across many locations. Typical cohort size: 10 startups - Brown says 10 is the sweet spot for attention and mentoring. Techstars Anywhere first year cohort: 4 companies - The first remote year intentionally started small to learn the model. Remote demo days: 16 simultaneously - Brown says Techstars ran 16 virtual demo days at once. Virtual demo day attendance: 2,000+ attendees - One virtual demo day example, including the Abu Dhabi program, drew over 2,000 attendees. LinkedIn members: 675 million - Sponsor copy cites LinkedIn’s active community size. Twilio startup credit: $500 - Twilio offers $500 in startup credit through its program. SendGrid credits: $3,000 - Twilio also offers $3,000 in SendGrid credits. Total Twilio/SendGrid offer: $3,500 - Combined startup offer promoted during the episode. Silicon Valley Bank investment: $40 million - Brown references SVB investing $40 million into Techstars’ business. Techstars fundraising status: Profitable nearly every year since incorporation - Brown says Techstars has been profitable almost every year. Global acceleration timing: Singapore went virtual in January; Italy switched three weeks in - Brown cites early pandemic responses as proof of operational readiness. Business travel example: 200,000 miles last year - Calacanis mentions his own travel as evidence of pre-pandemic business norms. India engineering output: 1 million engineers per year - Brown cites India’s large annual engineering graduate pool.
Pivotal Quotes: "The accelerator is at most half the experience with the rest of your life being the other half." — David Brown: Brown describes Techstars’ post-graduation philosophy and lifelong founder network. "The world has taken this big box of problems and dumped it out upside down." — David Brown: Brown explains why COVID creates an opening for entrepreneurs to solve urgent new problems. "It’s your company." — David Brown: Brown emphasizes founder autonomy in decisions about product, fundraising, and strategy.
Implications: Startups and accelerators will likely become more remote, more inclusive, and more global. Founders should focus on real customer problems, not Demo Day theater, because the pandemic rewards practical pivots in healthcare, education, communication, and logistics.
About This Week in Startups
Jason Calacanis covers startups, tech, markets, media, and all the hottest topics in business and technology. He also interviews the world’s greatest founders, operators, investors, and innovators.