Capital Factory raises $550K financing

Nov 27, 2013
Austin Business Journal

Business incubator and co-working space operator Capital Factory reported Tuesday receiving $550,000 of a planned $9 million funding


The downtown Austin-based technology group collected the capital from six investors, according to a filing with the U.S. Securities and Exchange Commission


The Capital Factory was launched in 2009 by three local serial entrepreneurs as a summer accelerator program. It has since grown to a year-round venture occupying two floors of the Omni Building downtown


Last month, Capital Factory co-founder Joshua Baer said the group plans to take a 2 percent stake in Austin’s best technology startups. It has raised $2 million of a $9 million fund to invest in nascent technology companies, he said


To date, the Capital Factory has invested in 40 startups but plans to reach at least 50. The group matches $50,000 angel investments and then targets select portfolio companies for $250,000 follow-on investments. The goal is to gain a 2 percent stake in the most promising local startups, he said


In May, President Barack Obama visited the Capital Factory during a six-hour technology-focused tour of the city


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