One of the country’s largest startup accelerators is starting a new program in Baltimore shortly after a large round of national layoffs.
Techstars is establishing an accelerator focused on health care and artificial intelligence in partnership with CareFirst BlueCross BlueShield and Johns Hopkins University. The new accelerator began accepting applications on Monday. The company will close its accelerator in Baltimore focused on equity, Managing Director Adam Phillips said. Techstar accelerators usually run for three years before cycling to a different institutional partner, so the end of the equitech accelerator is not unusual.
“Health care is such an important part of all of our lives,” Phillips said. “If we can help to bring tech to such an important area with these partners, we can get excited about that.”
The switch from one Baltimore accelerator program to another comes shortly after the firm laid off 17% of its national staff. The $80 million grant the company received from J.P. Morgan in 2022 ran out, leading the firm to shut down accelerators in several markets such as Washington, D.C.
TechStars worked with local ecosystem builder UpSurge Baltimore to create the Equitech Accelerator, which included companies like Shark Tank winner Richualist and vision company Rebokeh.
“The new Techstars AI Health Baltimore program aligns with the goals and tech focus areas of our federally designated Tech Hub. As the previous partner for Techstars Equitech, this new program with Johns Hopkins and CareFirst is a wonderful example of how UpSurge and our partners are building a thriving tech ecosystem,” UpSurge CEO Kory Bailey said in a statement.
Around 72 startups will participate in the new AI accelerator over the next three years, Phillips said. Companies selected for the accelerator receive $20,000 in investment in exchange for 6% of the company alongside a $100,000 convertible note. Techstars will also provide mentorship and networking opportunities. The firm will have a local office, but Phillips is unsure where it will be located.
Phillips wants to focus on companies creating their own algorithms and formulas instead of companies trying to repackage software like ChatGPT. AI in health care is often used to look at massive amounts of data that would be unwieldy for a human to analyze.
Carefirst and Hopkins will provide expertise on health care and artificial intelligence. The two organizations already have experience bringing new health care technologies to market. Hopkins is researching how to build a camera that can look at microscope cells and then use software to detect cancer in an image. CareFirst operates its own accelerator, Healthworx, previously known as 1501 Health.
“Johns Hopkins is well known for health care excellence and innovation, and with the 2023 launch of our Data Science and AI Institute, Johns Hopkins is building a similar concentration of excellence in this emerging field,” Myra Norton, head of startup acceleration at Johns Hopkins Technology Ventures, said in a press release. “By collaborating with Techstars at the intersection of healthcare and AI, Johns Hopkins aims to bring more entrepreneurs to our ecosystem.
The accelerator may also help Baltimore make a stronger case to the federal government if a new round of tech hub funding becomes available. The federal government selected Baltimore as a hub for research into the intersection of AI and health care last year but did not choose the region to win a lucrative batch of funding. Phillips said the accelerator would have likely benefited from the federal support if the city won the potentially $70 million of federal funds.
