Austin-area angel investing tops the nation

Oct 16, 2013
Austin Business Journal

The Central Texas Angel Network was the most active angel investment group in the nation during the second quarter

Based on deal flow, Austin-based CTAN led the nation, followed by Connecticut-based Golden Seeds and Arizona-based Desert Angels. The Houston Angel Network was No. 7 in the nation, according the second-quarter Halo Report by the Angel Resource Institute, Silicon Valley Bank and CB Insights

CTAN is a group of about 100 wealthy individuals — many of them former entrepreneurs — who pool their money to invest in startups of all kinds. They typically pony up a few hundred thousand dollars per investment, and the best way to connect with the group — aside from personal connections — is to peruse the "application process" page on its website

During the second quarter, Texas ranked No. 4 in the nation in terms of angel investments after accounting for 11 percent of the U.S. deals. California ranked No. 1 with 17.3 percent of the deals, followed by New England, 13.6 percent, and the Southeast, 12 percent, the report shows

Last year, CTAN invested about $8 million — the largest annual amount since the group was established in 2006 and a 37 percent increase in investment over the previous year. CTAN’s membership includes more than 100 investors

In August, CTAN officials said the group had invested $4.7 million by midyear — putting it on pace to top the 2012 record

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