Saturday, July 28, 2012

The Texas Entrepreneur Networks Startup Funding Report for Q2 2012

The Texas Entrepreneur Networks Startup Funding Report represents the equity investments made into Texas startup and early stage companies for the second quarter of 2012.  This report includes registered investments as well as the business entity filings for the state.  There is also a report from Gustthat highlights dealflow in the Texas-based angel networks.  Trends are noted as well as a forecast for early stage investments.  Here are some highlights from the report. 

Trends in Sectors

Overall the leading category for funding sector was Information Technology at $28M with 11 deals, followed by Healthcare at $28M comprised of 29 deals and Energy at $20M with 6 deals. 

Trends in Regions

The Central Texas region came in first with 35 deals worth $88M in funding, followed by the North region with 53 deals worth $79M.  Following that is the Gulf Coast region with 25 deals worth $46M, the South region with 6 deals worth $8M and the West region with 1 deal at $1.3M.

Texas Startup Investment Trends

Crowdfunding skyrockets in attention and traction with the passage of the JOBS Act of 2012 in April.  While the laws are still under review, there is an explosion in the number of crowdfunding sites coming online. According to Massolution, there are over 520 crowdfunding websites today.   Equity-based sites are growing the fastest at 30%.

Business Filings

Business filings of new entities in the state of Texas in the 2nd quarter grew 39% over the 1st quarter of 2012 across the state of Texas.   Central Texas grew 41%, North Texas grew 38%, South Texas grew 37%, Gulf Coast grew 41%, and West Texas grew 34%. 


In the second quarter, 1151 deals were forwarded to Texas-based angel networks.  Deal flow within the state increased by 60% from 2012 Q1 to 2012 Q2. The state of Texas falls from 3rd place in the US to 4th place for dealflow. 

TxEN Funded Companies

Startups seeking funding who participated in the TxEN program raised over $21M in the second quarter of 2012. 

You can see the full report at this link.

Best regards,
Hall T. 

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