Why Stellar and MoneyGram joined Techstars to improve payments
The Stellar Development Foundation (SDF) and MoneyGram, the payment solutions company, are partnering with Techstars. The partners will work together to establish a support program for developers around the world who are working on “technological innovation”.
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Specifically, the partners will target people trying to improve digital payments and blockchain technology. The goal is “streamline cross-border payments and support financial inclusion”, by a press release†
Techstars is a company that, according to its website, provides access to capital, customers, talent, infrastructure and mentorship. The company calls itself an “operational investor” created to support people in their entrepreneurial aspirations.
Techstars has worked with ClassPass, DataRobot, DigitalOcean and crypto-based companies, such as Chainalysis. Their partnership with Stellar and MoneyGram will focus on ways to reduce friction in the money transfer process in the Latin American region. The SDF explained:
Each year, over the next three years, the program selects a class of up to 12 fintech startups to participate in an immersive 13-week program in which entrepreneurs will partner with mentors from Techstars, the Stellar Development Foundation and MoneyGram to strengthen their value proposition. and product-market fit.
Once the cohorts have completed their program, they will have the opportunity to present their progress to the fintech community, the release said. Potential participants can submit applications from July 25, 2022 to October 12, 2022.
Denelle Dixon, CEO of the SDF and its executive director, claimed that blockchain technology has helped improve legacy payment infrastructure and provided people with better cross-border payment methods. Dixon added:
We believe we can improve access to the financial system for all participants, and we are proud to partner with MoneyGram and Techstars to empower the next generation of innovators to build a more inclusive and accessible cross-border payment system that takes full advantage of 21st century technology.
Details on the new stellar partnership
According to Techstar’s official website, the company also contributes with a monthly stipend for living expenses during their programs. In return, the beneficiaries give them a portion of their equity, in the form of fully diluted common stock.
This arrangement is in effect until the company “raises a discounted equity financing of $250,000 or more.” For blockchain-based companies, Techstars will claim a whopping 6% of the token reserve, if the backing company is a “token event, ICO, etc.” is organizing.
Beneficiaries have access to an additional $100,000 worth of convertible notes. Maëlle Gavet, CEO of Techstarts, said the following about this new partnership:
At Techstars, we believe that great ideas are everywhere, but access to opportunities is not. That’s why our global investment model aims to reach founders anywhere, anytime. As we strive to reach founders in America, this program will provide budding blockchain and digital asset innovators with the benefits and resources they need to build an inclusive, accessible financial system and deliver world-changing solutions.
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At the time of writing, XLM is trading at $0.17 with gains of 1.4% in the last 24 hours.
XLM with moderate gains in the last hour. Source: XLMUSDT Tradingview