David Cohen: How the Techstars Founder Built a $80 Billion Startup Empire by Giving First

What happens when an entrepreneur decides that helping others matters more than personal gain? For David Cohen, that philosophy built an $80 billion empire and transformed how startups get launched.

Since founding Techstars in 2006, Cohen has invested in over 4,900 companies across 89 countries, created 16 unicorns, and helped startups raise more than $31 billion in lifetime funding. But his path to becoming one of the most influential figures in the startup world started with a spectacular failure—and the hard lesson that came with it.

From Success to Failure: The Origins of a Movement

David Cohen describes himself as a "life-long entrepreneur" who has endured only one job interview in his entire career. He took the position, then quit shortly after to launch his first company.

That first company, Pinpoint Technologies, became a success story. Cohen co-founded the patient tracking software company with David Brown, and they sold it to ZOLL Medical Corporation in 1999. The acquisition made them confident—perhaps too confident.

For their second venture, Cohen and Brown decided to reverse every decision from their first company. They switched from enterprise to consumer focus, desktop to mobile, and C++ to Java. The result was a complete failure.

"If we had good mentors who knew this space well, they would have told us that in the second week, rather than us discovering it for ourselves in the second year," Cohen later reflected.

That painful realization planted the seed for what would become Techstars.

Building the Accelerator Model Before It Had a Name

In 2006—before "accelerator" became common terminology—Cohen joined forces with Brad Feld, Jared Polis, and David Brown to launch Techstars in Boulder, Colorado.

Their mission was straightforward: fix angel investing by offering founders what they actually needed—mentorship, community, and smart capital. Each program cohort received funding, hands-on support, and access to a powerful mentor network.

The model proved revolutionary. While only about 30% of typical startups survive long-term, Techstars-backed companies maintain an estimated survival rate of around 80%. Within three years of completing the program, 74% of Techstars companies successfully raise additional capital.

Today, Techstars operates accelerators in 27 cities across 9 countries, plans to invest in approximately 300 startups annually through 2027, and has witnessed 488 portfolio exits. Notable portfolio companies include Ramp, ClassPass, and even early involvement with Spotify.

The "Give First" Philosophy That Changed Everything

What made Techstars revolutionary wasn't just the funding or the structure—it was the underlying philosophy.

"Give first, help entrepreneurs, and the rest will work out," Cohen explains. "I've seen first-hand how giving without expecting any direct benefit pays back in spades."

This "Give First" philosophy became the cultural backbone of the Techstars community. It means trying to help anyone, especially entrepreneurs, without any expectation of getting anything back.

Cohen codified this approach in the "Techstars Mentor Manifesto," a set of 18 guiding principles that include:

• Be authentic
• Listen, too
• Guide, don't control
• Know what you don't know

Kevin Prentiss, a Techstars alum, captured the essence of this approach: "It's all about people. The mentorship and relationships you build will be much bigger and last longer than any of the companies you start, and that's what matters."

The Hardest Decision: Stepping Back as CEO

As Techstars grew, Cohen faced an uncomfortable truth. He excelled at ideation and strategy but struggled with execution and scaling infrastructure.

His early expansion method was unstructured—personally relocating for six months to launch each new location. When major corporate clients like Microsoft, Nike, and Disney came calling, the lack of formal systems became unsustainable.

In 2012, Cohen made what he calls his most important leadership decision: bringing David Brown on as co-CEO.

"It's never easy to admit there's someone out there more capable of running your business than you are," Cohen acknowledges.

The transition created cultural friction initially, but ultimately enabled Techstars' success. Brown managed people and operations while Cohen focused on investment strategy.

"It's better to be the co-CEO of a flourishing business than the CEO of a company that failed to reach its full potential," Cohen advises other founders facing similar crossroads.

Cohen returned as sole CEO in 2024, marking a new chapter focused on quality, creativity, and staying grounded in foundational values. As he stated in his one-year update: "We no longer chase growth for the sake of growth. We have big goals around helping founders succeed."

In 2025, Cohen was named an Entrepreneur of the Year National Award winner by EY, recognizing his continued impact on the startup ecosystem.

Advice for Today's Entrepreneurs

Cohen's insights for founders go beyond platitudes. Here are his key principles:

Surround Yourself With Great People

"Assuming that the founder has a mission, is driven to change the world, and has a great team, founders should also figure out a way to surround themselves with people and networks that can be impactful," Cohen advises.

This isn't just about accelerators—it's about building a support system of mentors, advisors, and peers who can provide honest feedback and open doors.

Be Mission-Driven

"I like investing in entrepreneurs who are mission driven," Cohen explains. "You need to convince me you have a vision of the world that your venture will help realize."

Investors aren't just buying into products or business models—they're buying into founders who believe deeply in what they're building.

Communicate With Intelligence and Credibility

Cohen warns that investors use shortcuts when evaluating founders: "Two easy ones to trip over are if the investor doesn't think you're very smart or thinks you are a liar."

This isn't about actually being dishonest—it's often about poor communication skills that fail to project intelligence or credibility. Practice your pitch, anticipate tough questions, and speak with confidence about what you know (and humility about what you don't).

Know When to Get Help

Perhaps Cohen's most personal advice: recognize when your company has outgrown your skill set. Founders eventually need help, especially during scaling. Maintaining involvement through board seats or advisory roles matters, but recognizing when to step aside can be the difference between success and stagnation.

The Accelerator Advantage: Is It Worth It?

For founders considering accelerators, the data offers perspective.

Top programs are highly competitive, with acceptance rates of just 1-3%. Approximately 4.2 million companies search for funding annually, with 1.6 million applying to accelerators—yet only 48,000 are accepted.

The benefits for those who do get in are substantial:

• Accelerator-backed startups raise 2.5 times more funding than non-accelerated ventures within two years of completing programs
• Accelerated startups raise an average of $1.8 million more in the first year post-graduation
• Over 50% of Y Combinator companies remain alive a decade after graduation—nearly double the typical survival rate

However, founders should set realistic expectations. Research shows that while over 50% of accelerator participants enter expecting to secure funding, only 10% actually close investments post-program. Most programs also require giving up 5-10% equity.

"Accelerators essentially compress years of business learning into a few intense months," one three-time accelerator graduate explains. "The structured environment forces founders to address fundamental questions about their business model and product-market fit early on."

The Give First Legacy

David Cohen's journey from failed entrepreneur to startup kingmaker carries a simple but powerful lesson: sometimes the best way to build something lasting is to focus on helping others first.

The "Give First" philosophy isn't just a nice sentiment—it's a strategic approach that has generated $80 billion in value while helping thousands of entrepreneurs avoid the costly mistakes Cohen learned the hard way.

For founders navigating their own journeys, Cohen's story offers both practical wisdom and a reminder that success in business doesn't have to come at the expense of generosity. In fact, it might depend on it.

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