Austin incubator Capital Factory partners with Silverton and Floodgate to back tech startups
Incubator Capital Factory has partnered with venture firms Silverton Partners and Floodgate to invest in tech startups based in Austin, Texas, according to VentureBeat.
The program of Capital Factory involves Austin tech firms that have already raised $25,000 in funding from two mentors. The incubator then matches the total amount and gives each startup $100,000. But now, companies entering the program will receive another $25,000 from each of the the two venture firms mentioned above. So, each startup will get a total of $150,000 in new capital, the report detailed.
Josh Baer, founder of Capital Factory, said the deal with Silverton and Floodgate will hopefully trigger an investing "snowball effect." The firm requires two tech mentors to provide funding from the startups. The program helps link entrepreneurs to others in the higher level of the tech industry. The two venture capital (VC) firms may also do the same thing since they will already have a connection to two major VC companies.
Last year, Capital Factory added 40 startups to its incubator program. The company expects to include another 50 this year. According to Baer, and estimated 20 startups will be matched to VC investments, VentureBeat reported.
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