The Capital Factory opens investment deals to smaller investors

Dec 3, 2014
Austin Business Journal

Anyone can now invest in Austin startups alongside the Capital Factory


The downtown co-working space and incubator venture is expecting to syndicate with smaller angel investors to back up a projected 15 deals per year. The Capital Factory, which typically invests $50,000 in startups, plans to syndicate deals as part of the financings. Investors can contribute as little as $1,000 per startup, according to a posting on the AngelList website


Managing Director Joshua Baer couldn't be reached for comment


The technology-centric 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 while hosting a schedule full of entrepreneurial events and meetings


In October 2013, Baer said Capital Factory planned to take a 2 percent stake in promising local technology startups. At the time, it had raised $2 million of a $9 million fund to invest in such companies


In February of this year, Austin-based Silverton Partners and California-based Floodgate Fund LP agreed to invest in startups backed by the Capital Factory. The two firms disclosed plans to invest $25,000 apiece to Capital Factory portfolio companies. 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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