Every year, Capital Factory engages 100+ startups as a strategic advisor, connecting the company to their next investor, customer and employee. Each startup contributes up to 1% common equity to the fund in exchange for our lifetime role as one of the most valuable partners in Texas.
We selectively invite the most active and important contributors to the Texas venture ecosystem to join the fund as an investor. Many lean in and actively support the portfolio companies given their strong networks and relevant experiences that can help the startups succeed.
Investors generate returns as startups grow the business, raise capital and ultimately sell or IPO, returning cash back to partners. This creates alignment and incentives for our investors to support the venture ecosystem and the portfolio wherever they can.