Sunday, January 17, 2016

Texas Venture Growth Forum Event Results -- 2

Startup funding today emphasizes the seed-stage startup seeking their first round of funding. Later stage companies find fewer funds in Texas which some call the “Series B crunch”.  While there are numerous VC funds for Series A, there are none in Texas for Series B.  Efforts are underway to build those funds, but it will take several years to put new funds in place. 

According to PitchBook, Texas-based companies raised an average of 40% of their Series B through E funding from Texas funds over the past ten years. When compared to California-based companies who raised closer to 70% of their funds instate, we have identified a funding gap in the Lone Star State.  

A key driver of funding in the past can be attributed to Austin Ventures (AV), who were responsible for over three billion dollars in funding for over 280 Texas companies, creating an estimated 50,000 Texas jobs since its founding over 30 years ago.  AV recently closed their doors as the founders sought to take their efforts in different directions.

The mission of the Texas Venture Growth Forum is to develop the funding and operational infrastructure to support Texas tech companies seeking the capital so as to keep their corporate roots planted firmly within the region.

The path forward is to attract capital to Texas companies through events that pair investors with startups in 1:1 sessions and provides an attractive setting for meeting and building relationships with Texas companies. 

See more about the Texas Growth Capital Forum coming up here.

No comments: