We Help Texas Entrepreneurs Raise Funding
The Texas Entrepreneur Networks (TEN) helps startups and growth companies raise funding from investors across the state of Texas. Companies can raise between $5K and $50M using the TEN Funding Portal. Once companies have raised their funding we provide ongoing support through additional services.
For Entrepreneurs: Why engage with us?
Often times, an entrepreneur doesn’t know where to start to find investment capital. They don’t understand the process, what investors are looking for, nor how to find them. We can show you the available funding options and help you decide which one is best for you.
We’re in Texas and we focus on Texas-based companies so we can meet and talk with you about your fund raise.
How does our program work?
TEN uses a funding as a service model in which you join the program for a monthly fee. We help you prepare your company, your investor documents, and your campaign plan. There are multiple sources of funding so you can choose the funding option that is best for your company. In crowdfunding, the portal on which you post your deal is not as important as the network you engage and the campaign you run. That is why we focus heavily on the campaign planning process. We offer a complete fund raising program that can help any company raise from $5K to $50M.
There are several types of raises and campaigns you can run. We call this the TEN Funding Roadmap as follows:
- Donations— ask family and friends (Raise up to $5K-$10K)
- Rewards—generate funding from pre-sales (Raise up to $5K to $50K)
- Texas Intrastate Crowdfunding raise – expand the fund raiser into your customer/prospect list ($50k to $250K)
- Accredited investor raise – launch an Accredited Investor raise ($250K to $2M)
- Revenue-based funding – sign up more investors using your revenue stream ($250K to $2M)
- Venture Capital/ Private Equity – pursue growth capital ($500K to $50M)
- Strategic—tap industry players seeking partners and potential acquisitions ($50K to $5M
- Grant – identify grant funding from foundations and government entities (Raise up to $5M)
- Debt—pursue bank loans, lines of credit, peer to peer lending options. (All levels)
The Texas Entrepreneur Networks (TEN) helps startups and growth companies raise funding from investors across the state of Texas.
For those who are just starting, we can help you run a donations campaign to raise money from family and friends. Having the backing of your family and friends is an important step. You can start a business with as little as $5,000.
After you have a product concept you can test it in the market using a Rewards (Kickstarter-style) campaign to pre-sell it. This phase will teach you a great deal about your market. In particular, you’ll learn about how to price, position, and promote your product. Many companies use this reward campaigns to build branding, awareness, leads, and customers, in addition to raising funding.
For donations and reward campaigns, we’ll help you choose the right place to display your campaign. Sometimes, a Kickstarter, IndieGoGo portal is appropriate while other times, they will add little value to your efforts. We help you strategize on where to place the campaign.
The state of Texas recently passed an Intrastate Crowdfunding ruling which gives resident of Texas the ability to invest in a startup — up to $5K per startup, per year. This opens the door to a great number of new investors for startup funding. Previously, only accredited investors could invest in a startup. An accredited investor is someone who has $1M of net worth not counting the house they live in. The Texas Intrastate Crowdfunding raise fits best in the $50K to $250K raise although it could be used to raise more.
The next step in your fund raise journey is the accredited investor raise. Called angel investors, these accredited investors typically invest $250K to $2M in a growth company. To gain interest from these investors you’ll need to have market validation (some revenue is a great way to prove this), a strong team, and a product that is going into the market.
After your revenue reaches the $500K/year run rate, you could consider revenue-based funding. Revenue-based funding refers to an investment that receives payback from a percent of top line revenue. In the past most startup funding was for equity in the company. The investor received a return when the company was sold or went public. Some entrepreneurs have no plans to sell the business so it’s best to look for other ways to pay back to the investor. Revenue-based funding is a good option as it doesn’t require a personal guarantees or hard asset collateral.
After angel funding and revenue-based funding, one can find funding from venture capitalists (called VCs) and private equity depending on the type of business you are funding. Funding from this source ranges from $500K to $50M.
Other sources of funding include strategic funding. Companies in your industry may invest in your company because they want you in business as it helps their business. You need to ensure that your goals and the strategic funder’s goals align but this is an important source of funding that is often overlooked.
Next there are grant funding solutions such as the state of Texas CPRIT fund which provides grant funds to those companies curing cancer. On the national level, the Small Business Innovation Research program (SBIR) provides up to $1M per company in the form of a grant. You don’t have to pay back the funds and there’s no dilution of equity ownership.
Finally, there are debt instruments including lines of credit, bank loans, and peer to peer lending options. These make sense when your company is in a position to pay back the loan.
We Help Texas Investors Find Deals
For Investors: Why use the TEN Funding Portal?
Investors seeking investment opportunities in startups, venture capital, real estate, and income-producing deals will find the TEN Funding Portal a valuable resource in locating new opportunities and tracking existing deals. All deals are based in Texas and can be verified through local follow up. Investors will find the opportunity to screen and source deals through the TEN Funding Portal a great time saver.
The Texas Entrepreneur Network (TEN) has been supporting the Texas entrepreneur eco-system since 2006 through angel networks, non-profits, conferences, funding forums, pitch programs, accelerators, podcasts and more. We help Texas investors find deals to invest in including:
- Debt, Equity, Convertible debt, Revenue-based funding, Loans, and more
- Startups, Growth Companies, Venture-backed, Private-equity backed, Real Estate, Private equity, Income Producing, Loans and Lending, and more
You can learn more about investing in early stage companies by downloading podcasts from InvestorConnect (http://investorconnect.org/) which is a program of the Texas Open Angel Network.
Non-accredited investors can find opportunities to invest through the Texas Intrastate Crowdfunding by visiting the txintrastatefunding.com site.