Is Techstars Telling The Truth about OpenLoop's Unicorn Status?
The article criticizes Techstars' claim of having 23 unicorns, focusing on OpenLoop's unverified $1 billion valuation. It highlights the lack of transparency in startup valuations and the pressure on founders to exaggerate success, calling for more accountability in the startup ecosystem.
Unicorns are nothing but fantasy.
David Cohen made an off handed comment to investors in an investor Discord community about how Techstars had "23 unicorns." Too bad the Techstars website only said 21.
After a few days silence from David after I put the conversation online, suddenly he had an announcement about one of those new unicorns.
It was OpenLoop, who now had a valuation "north of $1 billion."
Except, who is OpenLoop. We've heard almost nothing about the company ever from Techstars. Nothing on their blog or newsroom. No articles of any kind from TechCrunch. No SEC filings. Only a few articles in the The Des Moines Register.
The "announcement" came in the form of a podcast from Alejandro Cremades, which was later reposted by the company.
No other mentions of the valuation have been posted by OpenLoop.
Two weeks after this podcast was reposted is when Techstars made their announcement on LinkedIn. No one from OpenLoop commented on the post or engaged with it in any public way.
Investors on the OpenLoop cap table, Nava Ventures and SpringTime Ventures declined to comment.
As for the others, where is the 23rd unicorn? Who are they? How are they valued? No one knows.
The lack of transparency and verification is a problem. Unicorn status isn't just a flashy number — it's supposed to be a milestone backed by verifiable funding rounds, investor diligence, and media scrutiny.
When the claim exists only on a quiet LinkedIn post and a podcast, it looks like a PR move to inflate Techstars' standing without accountability.
Why does this matter?
Investors, founders, and the startup community rely on accurate, verifiable information to make critical decisions. When unicorn valuations become vague or unsubstantiated, it damages trust and the credibility of the entire ecosystem.
What's worse — founders in these companies are often pressured to go along with the narrative. They risk legal trouble or worse because investors demand maximum returns and perfect optics, even when the numbers don't add up.
The startup ecosystem deserves transparency. Not fantasy unicorns.