In nine US cities, including Oakland, New York, and Miami, Advancing Cities was established in 2022 with the goal of investing in over 400 businesses run by Black, Hispanic, and Latino, Indigenous American, and Pacific Islander entrepreneurs.

But when JP Morgan's sponsorship ends at the end of the year, the program won't be renewed.

TechCrunch reports that the bank opted not to renew the program last year, which prevented Techstars from initiating funding for a second round.

"The fund is expected to be fully deployed by the end of this year, as planned," a JP Morgan representative tells TechCrunch. JPMorganChase is still dedicated to helping all around the nation by growing its platform for private investments, engagement skills, and varied manager network."

TechCrunch revealed earlier this year that there were disagreements between the bank and Techstars about things like what constitutes diversity in terms of supporting founders.

Meanwhile, Techstars CEO David Cohen confirmed the 17% employment decrease in an email to employees sent last week, saying, "It has become clear to me that we overbuilt and overhire to support our ambition to scale."

The main areas seeing cutbacks include engineering, portfolio services, sales, and partnerships. The accelerator teams will not be significantly impacted, with the exception of Advancing Cities, which is estimated to consist of around 20 individuals.