Techstars Sydney Is the Latest Victim of the NSW Government’s Ongoing Startup Purge
•February 16, 2026
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Companies Mentioned
Why It Matters
The closure strips NSW of a proven pipeline of early‑stage capital and mentorship, weakening the state’s innovation ecosystem and raising doubts about future government support for accelerators.
Key Takeaways
- •NSW ends funding after three-year Techstars contract expires
- •36 startups received $6M, 58% first cheque
- •Program attracted 560 applications, 43% women founders
- •Diversity: 47% racially diverse, one-third female CEOs
- •Accelerator offered $120k for 5% equity
Pulse Analysis
Techstars’ arrival in Sydney was hailed as a milestone for Australia’s startup ecosystem, leveraging the global network of 3,100 mentors and 3,500 alumni to boost local innovation. The partnership with Investment NSW provided a modest but strategic $4 million commitment, positioning the accelerator as a flagship of the state’s Innovation Blueprint. By delivering a $120,000 seed investment for a 5% equity stake, Techstars Sydney filled a financing gap that many early‑stage founders struggle to cross, while also showcasing the power of a proven accelerator model.
The program’s impact is measurable: 36 companies secured over $6 million, more than half received their first external funding, and several scaled rapidly—some tripling revenue, landing marquee customers like Beyoncé’s brands, and advancing breakthrough technologies such as cancer detection. Diversity was a core pillar; 43% of applicants featured women founders and 47% included racial diversity, with a third of the 2025 cohort led by female CEOs. These metrics underscore how targeted accelerator funding can drive inclusive growth and elevate Australia’s global startup standing.
The government’s decision to let the funding lapse sends a cautionary signal to the broader ecosystem. Without state‑backed capital, early‑stage ventures lose a critical source of mentorship, network access, and validation that accelerators provide. Policymakers may need to rethink funding models—perhaps through co‑investment schemes or dedicated innovation funds—to sustain momentum. For founders, the gap highlights the importance of diversifying capital sources and building resilience against policy shifts, while investors may see new opportunities to step into the void left by public support.
Techstars Sydney is the latest victim of the NSW government’s ongoing startup purge
Techstars Sydney is shutting down after three years, with the NSW government ceasing funding for the accelerator program after the 3‑year contract expired.
Techstars Sydney managing director Christie Jenkins revealed that after three years, three cohorts and more than $6 million invested in 36 startups, the widely lauded three‑month accelerator 2026 program will not go ahead and she will depart as leader, along with the rest of the small team.
Techstars, founded 20 years ago in New York, is an OG global startup accelerator and venture capital investor. Its arrival in Sydney, supported by the former Coalition government, was seen as a coup for NSW, and as recently as last September, Investment NSW was touting the program as central a “the future of innovation” and its much‑touted and long‑delayed Innovation Blueprint.
It gave Australian startups that took part access to the 3,100 global Techstars mentors and 3,500 active alumni companies.
But now, the government has once again pulled the rug out from under early‑stage startups, in not continuing its modest investment in Techstars Sydney.
Birchal CEO Kirstin Hunter oversaw the first two years of the program, with champion athlete and investor Christie Jenkins taking on the Techstars Sydney managing director role in 2025.
“It’s been an incredible 3 years for Techstars in Sydney, and the funding from the Investment NSW and private investors has made that possible. We invested in 36 founding teams – and for 58 % we were the very first cheque in,” Jenkins said.
“I’ve seen founders go from tears of joy at receiving an offer that allows them to go full‑time, to hiring a team of 5 and hitting $1 million in ARR. This has mattered. And this is just the beginning. I’m so insanely proud of the impact Techstars Sydney has had. It’s hard to create a company from an idea. It’s risky. It takes inordinate self‑belief and effort.
“In a three‑month period we’ve seen founders triple their revenue, sign Beyoncé’s brands as customers, steal enterprise customers from global competitors, test a new cancer detection technology on human samples, raise millions… These founders are off the charts incredible humans. And maybe one of them will end up hiring me!”
Jenkins said that while she’s disappointed the program won’t continue this year, she’s “simply grateful” for the chance to lead it.
“Grateful to the founders for saying yes and trusting us. Grateful to the 120 mentors who helped without asking for anything. Grateful to the 20 guest speakers – from the special forces to unicorn founders – for sharing their wisdom,” she said.
“Grateful to the many, many people in the ecosystem that came to events, cheered us on, and made the magic that was Techstars Sydney.”
Opportunities for all
Techstars Sydney was also the most generous of local accelerator programs in investment terms, offering founders US$120,000 (c.A$170,000) for 5 % of the business.
The 2025 program received 560 applications, up from 390 in 2024.
It also addressed the diversity issues that plague the startup sector. Among the top 150 applications, 43 % had women in the founding team, and 47 % had racial diversity.
Of the 12 backed last year, a third were led by female CEOs, and five had founders from culturally and linguistically diverse backgrounds.
Program manager Gwen Masonsong summed it up in a LinkedIn post saying she “wasn’t the obvious pick” when she joined three years ago.
“Techstars didn’t just give me a job. It gave me an opportunity. A migrant operator who loved systems and believed innovation should serve people. Trapped in the body of a biomedical engineer,” she wrote.
“Yet, I was part of the team who built one of Australia’s most competitive accelerator programs.
“This program gave me the opportunity to make a name for myself in Australia. And in turn, I made sure it gave founders the same. The opportunity to be seen, to be backed, and to build something that changes industries.”
Last September, Investment NSW deputy secretary Rebecca McPhee said the NSW government “is proud to support the Techstars Accelerator Program” and startups “tackling real‑world problems”.
“That’s exactly the kind of innovation we want to see thrive in NSW,” she said.
“It’s great to see the Techstars Accelerator Program delivered in the heart of Tech Central, contributing to a thriving innovation economy in NSW.”
Later this year, that economy will be a little less thriving because of the government’s decision to discontinue its modest contribution to Techstars.
Investment NSW and the relevant minister, Anoulack Chantivong, have been contacted for comment. The minister has not responded.
An Investment NSW spokesperson said “funding has now concluded as scheduled” in a statement to Startup Daily.
“The NSW Innovation Blueprint, in response to the Pounder Review, highlighted the importance of diversity to the state’s Innovation ecosystem, and we were pleased to commit $4 million to a diversity pre‑accelerator in the most recent NSW Budget,” they said.
The budget was announced in June 2025. Expressions of interest for the program closed in early October last year.
The government has yet to make an announcement on who will deliver the diversity pre‑accelerator and when.
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