Capital Factory continues to expand downtown Austin offices

Jan 12, 2015
Austin Business Journal

The Capital Factory, a downtown co-working space and incubator, continues to solidify its place with Austin's technology startup community

This week, the Capital Factory completed its expansion to the entire fifth floor of the Omni building after taking office space there 18 months ago. The additional space is designed to accommodate larger startups of up to 15 workers each, Managing Director Joshua Baer said Friday

The Capital Factory eventually plans to add amenities such a coffee shop and a game room, he said

The technology-centric venture, which launched in 2009, initially operated a summer accelerator program for entrepreneurs. It subsequently took over the Omni building's entire 16th floor — the top level — to provide co-working space to startups and hosted entrepreneurial-based events

The Capital Factory now includes 650 members and hosts more than 300 companies. Its events have attracted about 32,000 attendees, Baer said. In May 2013, a year after its co-working space expansion, President Barack Obama toured the Capital Factory during an Austin visit to promote technology initiatives

The venture's popularity wasn't exactly a surprise to its organizers

In December, the Capital Factory revealed that it was expecting to syndicate with smaller angel investors to finance a projected 15 deals per year

In October 2013, Baer said the Capital Factory planned to invest in early-stage tech companies to take a 2 percent stake. Last month, the Capital Factory reported raising $2.7 million of a planned $9 million financing from 34 investors, according to a filing with the U.S. Securities and Exchange Commission. In February 2014, Austin-based Silverton Partners and California-based Floodgate Fund LP agreed to invest $25,000 apiece in startups backed by the Capital Factory. The deal was designed to provide each early-stage company with $150,000 in financing when mentors also invest an additional $25,000 apiece, Baer said at the time

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