Capital Factory to expand startup investing plan

Oct 11, 2013
Austin Business Journal

The Capital Factory plans to take a 2 percent stake in Austin's best technology startups

The downtown tech incubator and co-working group has raised $2 million of a $9 million fund to invest in nascent technology companies. To date, it has invested in 40 startups but plans to reach at least 50, Capital Factory co-founder Josh Baer said Thursday at the group's annual "Demo Day" when the startups make pitches to angel investors

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

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 entire floors of the Omni Building in downtown Austin

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

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