After investing $6 million in three cohorts, Techstars Sydney won’t run a 2026 program. Another blow to NSW startups following SXSW’s closure last month.
What’s happening: Techstars Sydney is shutting down after the NSW government ceased funding following the three-year contract’s expiration.
Why this matters: The closure marks another significant blow to Sydney’s startup sector amid a broader pattern of NSW government funding cuts.
The globally recognised Techstars accelerator programme is closing in Sydney after the NSW government declined to renew funding, marking the latest setback for the city’s startup ecosystem under Labor’s current administration.
Techstars Sydney managing director Christie Jenkins revealed the closure in a LinkedIn post, announcing that after three years, three cohorts and more than $6 million invested in 36 startups, the widely lauded three-month accelerator 2026 programme will not go ahead.
Government pulls funding
The closure follows the NSW government’s decision not to continue its investment after the three-year contract expired. Investment NSW confirmed in a statement that funding concluded as scheduled.
“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,” an Investment NSW spokesperson said.
The budget was announced in June 2025. Expressions of interest for the diversity pre-accelerator programme closed in early October last year. The government has yet to announce who will deliver the programme or when it will begin.
Minister Anoulack Chantivong has not responded to requests for comment.
Three-year track record
Techstars, founded 20 years ago in New York, is a global startup accelerator and venture capital investor. Its arrival in Sydney, supported by the former Coalition government, was seen as a coup for NSW.
As recently as September, Investment NSW was promoting the programme as central to the future of innovation and its long-delayed Innovation Blueprint.
“Three years. Three programs. Thirty-six investments. And for now, we close the Techstars Tech Central Sydney chapter,” Jenkins wrote on LinkedIn.
“Our promise to founders was that the accelerator would be ‘the best three months of your decade.’ We did that. What none of us expected was how much they would give back in return.”
Jenkins highlighted the achievements of participating startups over the three years, noting that founders signed their first letters of intent, tripled revenue to hit $1 million annual recurring revenue in three months, pivoted entirely and built new products in five weeks, landed global brands as customers, tested new cancer technology on human samples, and raised millions of dollars.
“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.”
The programme was the most generous of local accelerators in investment terms, offering founders US$120,000 (AU$170,000) for 5% of the business.
Latest in series
The Techstars closure is the latest blow to the Sydney startup sector inflicted by the NSW government and Investment NSW, following the loss of SXSW Sydney last month when it withdrew funding, the closure of the Sydney Startup Hub, cuts to MVP funding, and delays in rolling out support amid ongoing reviews nearly three-quarters through Labor’s first term in power.
SXSW Sydney shut down in January after Destination NSW pulled funding. The event had generated a three-year cumulative economic impact of $276 million and attracted more than 345,000 attendees in 2025.
The NSW Budget 2025 allocated nearly $80 million to help tech businesses grow through the Innovation Blueprint, with $38.5 million for Tech Central, $20 million for using new technology in housing and energy, $6 million for early-stage product development, $6 million for manufacturers using tech, and $4 million for training women founders and regional tech leaders.
Diversity achievement overlooked
The 2025 programme received 560 applications, up from 390 in 2024. The programme also addressed 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 startups backed last year, three were led by women chief executives, and five had founders from culturally and linguistically diverse backgrounds.
Last September, Investment NSW deputy secretary Rebecca McPhee said the NSW government was 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.”
Jenkins reflected on her personal journey with the programme in her LinkedIn post.
“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.”
Jenkins concluded her announcement with a message to the ecosystem.
“While we won’t be running additional accelerator classes in Sydney for now, our commitment to the founders and to this ecosystem remains unchanged. Techstars continues to believe deeply in the vitality of the Australian startup community.”
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