VFA, Techstars and the shutdown trend

Last week ended with the news that Techstars is laying off 17% of staff and ending its accelerator program in DC and three other US cities. Though not a full shutdown — the global pre-seed investor is still active, and even still running some accelerator programs — the move seems part of a trend.

Earlier last week, we reported that Venture For America, a national organization that places college graduates with startups, is ending operations entirely after 13 years. Financial issues forced the closure and layoffs, with 15 people affected.

That abrupt shutdown follows last month’s tech-program shutdown news. Among the orgs affected were Benefits Data Trust, a data-forward nonprofit working to help people access government benefits, which will shutter after two decades, and DC’s Byte Back, a digital literacy nonprofit, which closed its doors after 27 years.

What’s the deal? Technical.ly CEO Chris Wink dug into the tax filings and examined how the pandemic revenue spike may actually have led these organizations astray, but that doesn’t tell the whole story. We want to hear your thoughts and experiences.

If you were affected by any of these developments, or have related insight you want to share, hit reply and let us know.