Techstars has partnered with the Stellar Development Foundation (SDF), and MoneyGram, a payment solutions company. The partners will cooperate to create a support program for developers around the world working on “technological innovation”.
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The partners will be focusing on those who are trying to improve the digital payment and blockchain technology. The objective is “streamline cross-border payments and support financial inclusion”, per a press release.
Techstars provides mentorship and access to capital. According to the company’s website, it also offers customers, capital, customer support, talent and infrastructure. The company calls itself an “operational investor” created to support people on their entrepreneurial aspirations.
Techstars worked with ClassPass and DataRobot as well as DigitalOcean and crypto-based businesses like Chainalysis. The partnership between Stellar and MoneyGram will help to eliminate friction in money transfers within the Latin American region. SDF explained the following:
The program will be offered three times a year. Each class will consist of 12 startups in fintech. Entrepreneurs will participate in a 13-week immersive program with Techstars and Stellar Development Foundation mentors. This program helps entrepreneurs to strengthen their product-market fit and value proposition.
After the completion of their program, cohorts will be given the chance to showcase their achievements in front the fintech community. Prospective participants can begin to submit applications starting July 25, 2022 and ending October 12, 2022.
Denelle Dixon is the CEO of the SDF, and the Executive Director. She claimed that blockchain technology had contributed to the improvement and accessibility of legacy payment infrastructures and provided people with more cross-border payment options. Dixon said:
We believe that we can improve access to the financial system for all participants, and we’re proud to work with MoneyGram and Techstars to empower the next generation of innovators to build a more inclusive and accessible cross-border payments system that takes full advantage of 21st-century technology.
Information on the New Stellar Partnership
Per Techstar’s official website, the company also contributes with a monthly stipend for living expenses during their programs. Beneficiaries receive in exchange a percentage of their equity as fully diluted common stocks.
This arrangement stands until the company “raises a priced equity financing of $250,000 or more”. For blockchain-based companies, Techstars claims as much as 6% of the token reserve, if the supported company conducts a “token event, ICO, etc”.
Convertible notes can be added to the benefits for an additional $100,000. Maëlle Gavet, Techstarts CEO said the following on this new partnership:
Techstars is a firm believer that great ideas exist everywhere but not access to them. That is why the global investment model we use is designed to reach entrepreneurs anywhere. We are looking to reach entrepreneurs in Americas with this program. This will offer early-stage innovators of digital assets and blockchain the tools and resources to create a global financial system.
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