Techstars, a well-known accelerator program for startups, has experienced significant turmoil and changes under the leadership of CEO Mäelle Gavet. Multiple sources, including employees, founders, and managing directors, have described a toxic work culture and a power struggle between Gavet and the managing directors. This has resulted in the shutdown of several Techstars programs, layoffs, and an exodus of senior leadership and corporate sponsors.
Gavet took over as CEO in January 2021 and inherited a company that was struggling to define its future strategy. Techstars had a complex and expensive business model that focused on emerging markets in various countries. Gavet lacked experience as a startup founder or in venture capital, which concerned some employees. Additionally, her leadership style and decision-making skills were questioned by some.
Techstars experienced financial losses in 2021, prompting Gavet to implement cost-cutting measures and a new strategy called “Techstars 2.0.” This centralized the organization under Gavet’s command and led to layoffs and program closures. The changes were met with resistance and criticism from employees and managing directors who felt undervalued and unsupported.
The relationship between Gavet and the managing directors became increasingly strained, with multiple managing directors leaving or being terminated. The managing directors, who were once in control of their programs, felt a loss of power and feared being ousted. Gavet’s leadership style and lack of empathy were criticized by employees, leading to a toxic work culture and high turnover.
Techstars also faced challenges with its corporate partners, with several partnerships not being renewed. The company’s financial outlook worsened as the industry experienced a bear market and interest rates increased. This led to further cuts and layoffs within Techstars.
Despite the turmoil, Techstars has raised a new fund and has enough operational cash to sustain the company for a few more years. However, uncertainty remains about the future of the organization and whether more cuts will be implemented.
In conclusion, Techstars has gone through a tumultuous period under the leadership of Mäelle Gavet, with program closures, layoffs, and an exodus of senior leadership and corporate partners. The toxic work culture and power struggles have caused significant upheaval within the organization. The future of Techstars remains uncertain, as the company looks to recover and redefine its direction in the startup industry.
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