TxEN Startup Funding Report Q4 2012 Compiled by Texas ......Texas Entrepreneur Networks Page 6 Funded Companies by Region for the 4th Quarter 2012 Date Target Sector Funding City 12/28/2012

Texas Entrepreneur Networks Page 1

TxEN Startup Funding Report Q4 2012

Compiled by

Texas Entrepreneur Networks

Hall T. Martin

Director, Texas Entrepreneur Networks

512-656-9487

[email protected]


TxEN Startup Funding Report Q4 2012

Executive Summary

The Texas Entrepreneur Networks Startup Funding Report represents private investments made

into Texas startup and early stage companies for the fourth quarter of 2012. This report includes

registered investments as well as the business entity filings for the state. There is also a report

from Gust, (www.gust.com) that highlights dealflow in the Texas-based angel networks. Trends

are noted as well as a forecast for early stage investments. Also, the Texas Entrepreneur

Network Startup Index which measures the health of startup businesses is shown.

TEN Startup Index

For Q4, 2012, the TEN Startup Index remained at 43, the same as the previous quarter but up

from 30 over the year ago quarter.

Trends in Sectors

Overall the leading category for funding sector was Biotechnology at $72M with 16 deals,

followed by Other at $67M comprised of 34 deals and Semiconductor at $59M with 2 deals, and

Healthcare at $23M with 20 deals.

Trends in Regions

The Central Texas region came in first with 48 deals worth $139M in funding, followed by the

North Texas region with 35 deals worth $92M. Following that is the Gulf Coast region with 20

deals worth $35M, the South region with 4 deals worth $28M, and the West region with 2 deals

worth $2M.

TxEN Funded Companies

Startups seeking funding who participated in the TxEN program raised over $1.75M in the 4th

quarter of 2012.

http://www.gust.com/


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 4th quarter added 29,861 new entities

which is a 20% increase over the number of new entities filed in Q3, 2012.

GUST Data

In the fourth quarter of 2012, there were 1021 funding applications forwarded to investor groups

in Texas. Texas remained in fourth place in the top 10 list of deal-making US states. The leading

industry seeking funding was Web Services at 9% of the deals.

Contact Us

For further information on funding in the state of Texas or to receive the analyzed data in

spreadsheet format please contact us:

Hall T. Martin


512-656-9487

[email protected]

mailto:[email protected]


TEN Startup Index

The TEN Startup Index calculates the state of the early stage business environment by measuring

the number of new business filings, the number of funded companies, and the average funding

per company during the time period. The TEN Startup Index is calculated as follows:

TEN Startup Index = Business Filings/1000 + Funded Companies/10 + Average Raise/1000000

Business Filings account for 60% of the score, while the number of funded companies account

for 25%, and funding accounts for 15%.

Business Funded Amount of Average

Quarter Filings Companies Funding Raise

TEN Startup

Index

2011-

Q3

24,059 106 $817,000,000 $7,707,547 42

2011-

Q4

15,631 96 $463,000,000 $4,822,917 30

2012-

Q1

18,735 105 $424,670,320 $4,044,479 33

2012-

Q2

26,132 120 $224,540,901 $1,871,174 40

2012-

Q3

24,922 140 $503,590,282 $3,597,073 43

2012-

Q4 29,861 109 $297,580,540 $2,730,097 43

For Q4, 2012, the TEN Startup Index remained at 43 similar to the previous quarter but up from

30 and over the year ago quarter.


Funded Companies by Region for the 4th Quarter 2012

Region Value Deals Percent

Central $139,464,109 48 46.87%

North $92,313,707 35 31.02%

Gulf Coast

$35,280,739 20 11.86%

South $28,576,985 4 9.60%

West $1,945,000 2 0.50%

$297,580,540 109


Funded Companies by Region for the 4th Quarter 2012

Date Target Sector Funding City

12/28/2012 Adometry Information Technology $8,000,003 Austin

11/13/2012 Snap Trends Information Technology $550,000 Austin

11/20/2012 Isostem Other $500,000 Austin

12/26/2012 Appconomy Digital media $5,866,555 Austin

10/11/2012 Yip Yap Other $220,141 Lago Vista

11/2/2012 Mirna Therapeutics Biotechnology $17,249,995 Austin

11/13/2012 DE Spirits Inc Consumer Products $10,496,267 Austin

12/19/2012 NanoMedical Systems Biotechnology $1,700,000 Austin

10/9/2012 Calxeda Semiconductor $55,009,631 Austin

12/11/2012 Heliovolt Energy $12,173,791 Austin

10/9/2012 Silvercar Other $11,526,848 Austin

11/16/2012 Bazaarvoice Digital media $6,713,698 Austin

11/14/2012 Emergency Service Partners Healthcare $6,158,687 Austin

10/15/2012 Xtreme Power Energy $5,100,000 Austin

10/24/2012 Silicon Space Technology Corp Other $5,053,684 Austin

12/28/2012 Iconixx Software Information Technology $4,764,900 Austin


11/2/2012 Ambiq Micro Semiconductor $3,663,287 Austin

10/10/2012 InView Technology Other $3,454,174 Austin

11/28/2012 Macheen Information Technology $3,245,000 Austin

10/1/2012 COPSync Other $1,725,000

Canyon Lake

11/26/2012 Waldo Networks Healthcare $1,608,416 Austin

10/10/2012 Shoutz Digital media $1,458,000 Austin

11/5/2012 Algebraix Data Computers $1,350,000 Austin

10/17/2012 Quarri Technologies Digital media $1,287,916 Austin

10/18/2012 Goodybag Other $1,242,762 Austin

11/21/2012 Toopher Other $1,180,999 Austin

10/17/2012 RareCells Holding Biotechnology $1,150,000 Austin

11/15/2012 Minimus Spine Biotechnology $1,039,926 Austin

12/31/2012 Schoox Digital media $1,000,000 Austin

12/7/2012 Learning List Other $999,999 Austin

12/26/2012 Compare Networks Information Technology $775,000 Austin

10/25/2012 Thunderbird Energetica Consumer Products $750,000 Austin

11/16/2012 Drill Map Digital media $679,849 Austin

10/26/2012 TalentGuardHoldings Other $485,000 Austin

11/16/2012 Briggio Retail/Restaurants/Hospitality $350,000 Austin

10/24/2012 Enlyton Computers $325,000 Austin


11/5/2012 Nightraft Digital media $275,000 Austin

10/24/2012 Blue Avocado Consumer Products $250,000 Austin

11/14/2012 Emergency Service Physicians Healthcare $209,722 Austin

11/29/2012 Cross Country Other $200,000 Austin

11/14/2012 Mobile Security Investments Digital media $115,000 Austin

12/21/2012 Independence Brewing Company

Retail/Restaurants/Hospitality

$110,000

Austin

10/22/2012 Criquet Apparel Consumer Products $100,000 Austin

10/22/2012 My Secret Apparel Other $90,000 Austin

10/26/2012 Montana Urological Healthcare $80,550 Austin

12/20/2012 Uro Lasers Healthcare $21,670 Austin

12/19/2012 Illinois Cryotherapy Healthcare $5,600 Austin

10/1/2012 Advanced Seismic Technologies Energy $424,999 Stafford

10/2/2012 Bullritos Investment Group

Retail/Restaurants/Hospitality $2,000,000 Houston

10/4/2012 Vyrian Other $90,900 Houston

10/4/2012 Castle Biosciences Biotechnology $1,343,689

Friendswood

10/4/2012 Valley Integrated Physicians Healthcare $51,000 Houston

10/9/2012 Jason's House Other $100,700 Houston

10/11/2012 Oxane Materials Other $4,990,065 Houston

10/16/2012 Premience Other $2,350,000 Sugarland

10/26/2012 Midnight Hour Brewers Consumer Products $300,000

College Station

11/1/2012 Clear Vascular Biotechnology $1,000,000 Woodlands

11/1/2012 Bio-Path Holdings Biotechnology $1,004,101 Houston

11/5/2012 Hidalgo Offers Healthcare $60,000 Houston

11/5/2012 Dallas Buyers Club Other $1,328,000 Houston

11/13/2012 DeepDriver LLC Other $140,000 Houston

11/15/2012 Amicus Other $550,000 Houston

11/26/2012 Whimseybox Other $570,614 Houston

11/26/2012 Serene Oncology Biotechnology $270,000 Woodlands


12/6/2012 Visualase Healthcare $3,000,000 Houston

12/19/2012 Sunny Sky Manufacturing Consumer Products $13,000,000 Houston

10/1/2012 Crown Surgical Products Healthcare $10,000 Dallas

10/4/2012 Peloton Therapeutics Healthcare $11,700,000 Dallas

10/4/2012 Liberty Toxicology Healthcare $15,000 Dallas

10/10/2012 J Hilburn Retail/Restaurants/Hospitality $13,787,513 Dallas



10/11/2012 Medhab Healthcare $23,542 Dallas

10/17/2012 Linear Surgical Products Healthcare $40,000 Dallas

10/18/2012 Crest Surgical Products Healthcare $5,000 Dallas

10/23/2012 ZS Pharma Biotechnology $27,600,001 Ft. Worth

10/25/2012 ScanSee Telecommunications $515,000 Dallas

11/2/2012 Access Pharmaceuticals Biotechnology $10,000,000 Dallas

11/6/2012 Capstone Metering Other $4,900,000 Dallas

11/8/2012 Microquant Other $200,000

Wichita Falls

11/8/2012 Syndiant Other $7,585,935 Dallas

11/13/2012 Bubblelife Media Digital media $50,000 Dallas

11/26/2012 COD Friendly Other $325,000 Dallas

11/27/2012 EntreOrg Systems Other $250,000 Southlake

11/28/2012 Perio Sciences Biotechnology $1,783,234 Dallas

11/29/2012 Blue Calypso Other $545,958 Dallas

12/7/2012 o9 Solutions Other $3,000,000 Dallas

12/10/2012 Ideal Implant Biotechnology $27,500 Irving

12/12/2012 Lightstat Biotechnology $970,000 Dallas

12/12/2012 Tri Global Energy Energy $40,000 Dallas


12/14/2012 Bearkat Renewable Energy Energy $292,925 Dallas

12/14/2012 Vucomp Other $5,000,000 Dallas

12/17/2012 Telefix Communications Telecommunications $123,500 Dallas

12/17/2012 fisoc Other $1,724,880 Dallas

12/17/2012 Calpian Other $562,500 Dallas

12/19/2012 Diamond Surgical Products Healthcare $20,000 Dallas

12/19/2012 Airband Communication Holdings Telecommunications $1,579,000 Dallas


12/26/2012 nGame Inc Digital media $1,081,219 Dallas

12/28/2012 Blaze Surgical Healthcare $20,000 Dallas


10/17/2012 Wytec International Other $100,000 San Antonio

10/23/2012 Fiberio Other $3,786,485 McAllen

11/8/2012 BioNumerik Biotechnology $10,190,500 San Antonio

11/14/2012 Seno Medical Instruments Biotechnology $14,500,000 San Antonio

10/23/2012 CerRx Biotechnology $1,945,000 Lubbock

10/29/2012 Biocycle Energy $1,500,000 Amarillo

$297,580,540


Funded Companies by Sector for the 4th Quarter 2012

Sector Value Deals Percent

Biotechnology $72,823,951 16 24.47%

Other $66,866,174 34 22.47%

Semiconductor $58,672,918 2 19.72%

Healthcare $23,044,187 20 7.74%

Energy $18,031,715 6 6.06%

Digital media $16,395,682 11 5.51%

Retail/Restaurants/Hospitality $16,247,513 4 5.46%

Consumer Products $14,400,000 6 4.84%

Information Technology $8,784,900 5 2.95%

Computers $1,675,000 2 0.56%

Telecommunications $638,500 3 0.21%

$297,580,540 109


Funded Companies by Sector for the 4th Quarter 2012

Date Target Sector Funding City

11/2/2012 Mirna Therapeutics Biotechnology $17,249,995 Austin

10/23/2012 CerRx Biotechnology $1,945,000 Lubbock

12/19/2012 NanoMedical Systems Biotechnology $1,700,000 Austin

10/23/2012 ZS Pharma Biotechnology $27,600,001 Ft. Worth

11/14/2012 Seno Medical Instruments Biotechnology $14,500,000 San Antonio

11/8/2012 BioNumerik Biotechnology $10,190,500 San Antonio

11/2/2012 Access Pharmaceuticals Biotechnology $10,000,000 Dallas

11/28/2012 Perio Sciences Biotechnology $1,783,234 Dallas

10/4/2012 Castle Biosciences Biotechnology $1,343,689 Friendswood

10/17/2012 RareCells Holding Biotechnology $1,150,000 Austin

11/15/2012 Minimus Spine Biotechnology $1,039,926 Austin

11/1/2012 Bio-Path Holdings Biotechnology $1,004,101 Houston

11/1/2012 Clear Vascular Biotechnology $1,000,000 Woodlands

12/12/2012 Lightstat Biotechnology $970,000 Dallas

11/26/2012 Serene Oncology Biotechnology $270,000 Woodlands

12/10/2012 Ideal Implant Biotechnology $27,500 Irving

10/24/2012 Enlyton Computers $325,000 Austin

11/5/2012 Algebraix Data Computers $1,350,000 Austin

10/22/2012 Criquet Apparel Consumer Products 100,000 Austin

10/24/2012 Blue Avocado Consumer Products $250,000 Austin

10/25/2012 Thunderbird Energetica Consumer Products $750,000 Austin

10/26/2012 Midnight Hour Brewers Consumer Products $300,000

College Station

11/13/2012 DE Spirits Inc Consumer Products $10,496,267 Austin

12/19/2012 Sunny Sky Manufacturing Consumer Products $13,000,000 Houston

10/10/2012 Shoutz Digital media $1,458,000 Austin

10/17/2012 Quarri Technologies Digital media $1,287,916 Austin


11/5/2012 Nightraft Digital media 275,000 Austin

11/13/2012 Bubblelife Media Digital media $50,000 Dallas

11/14/2012 Mobile Security Investments Digital media $115,000 Austin

11/16/2012 Bazaarvoice Digital media $6,713,698 Austin

11/16/2012 Drill Map Digital media $679,849 Austin

12/26/2012 nGame Inc Digital media $1,081,219 Dallas


12/31/2012 Schoox Digital media $1,000,000 Austin

10/1/2012 Advanced Seismic Technologies Energy $424,999 Stafford

10/15/2012 Xtreme Power Energy $5,100,000 Austin


10/29/2012 Biocycle Energy $1,500,000 Amarillo

12/11/2012 Heliovolt Energy $12,173,791 Austin

12/12/2012 Tri Global Energy Energy $40,000 Dallas

12/14/2012 Bearkat Renewable Energy Energy $292,925 Dallas

10/1/2012 Crown Surgical Products Healthcare $

10,000.00 Dallas

10/4/2012 Peloton Therapeutics Healthcare $11,700,000 Dallas

10/4/2012 Liberty Toxicology Healthcare $15,000 Dallas

10/4/2012 Valley Integrated Physicians Healthcare $51,000 Houston


10/11/2012 Medhab Healthcare $23,542 Dallas

10/17/2012 Linear Surgical Products Healthcare $40,000 Dallas

10/18/2012 Crest Surgical Products Healthcare $5,000 Dallas

10/26/2012 Montana Urological Healthcare $80,550 Austin

11/5/2012 Hidalgo Offers Healthcare $60,000 Houston

11/14/2012 Emergency Service Partners Healthcare $6,158,687 Austin

11/14/2012 Emergency Service Physicians Healthcare $209,722 Austin

11/26/2012 Waldo Networks Healthcare $1,608,416 Austin

12/6/2012 Visualase Healthcare $3,000,000 Houston



12/19/2012 Illinois Cryotherapy Healthcare $5,600 Austin

12/20/2012 Uro Lasers Healthcare $21,670 Austin

12/28/2012 Blaze Surgical Healthcare $20,000 Dallas


11/13/2012 Snap Trends Information Technology $550,000 Austin

11/28/2012 Macheen Information Technology 3,245,000 Austin

12/26/2012 Compare Networks Information Technology $775,000 Austin

12/28/2012 Iconixx Software Information Technology $4,764,900 Austin

12/28/2012 Adometry Information Technology $8,000,003 Austin

10/1/2012 COPSync Other $1,725,000 Canyon Lake

10/4/2012 Vyrian Other $90,900 Houston

10/9/2012 Jason's House Other $100,700 Houston

10/9/2012 Silvercar Other $11,526,848 Austin

10/10/2012 InView Technology Other $3,454,174 Austin


10/16/2012 Premience Other $2,350,000 Sugarland

10/17/2012 Wytec International Other $100,000 San Antonio

10/18/2012 Goodybag Other $1,242,762 Austin

10/22/2012 My Secret Apparel Other $90,000 Austin

10/23/2012 Fiberio Other $3,786,485 McAllen

10/24/2012 Silicon Space Technology Corp Other $5,053,684 Austin

10/26/2012 TalentGuardHoldings Other $485,000 Austin


11/5/2012 Dallas Buyers Club Other $1,328,000 Houston

11/6/2012 Capstone Metering Other $4,900,000 Dallas

11/8/2012 Microquant Other $200,000 Wichita Falls

11/8/2012 Syndiant Other $7,585,935 Dallas

11/13/2012 DeepDriver LLC Other $140,000 Houston

11/15/2012 Amicus Other $550,000 Houston

11/20/2012 Isostem Other $500,000 Austin

11/21/2012 Toopher Other $1,180,999 Austin

11/26/2012 COD Friendly Other $325,000 Dallas

11/26/2012 Whimseybox Other $570,614 Houston

11/27/2012 EntreOrg Systems Other $250,000 Southlake



11/29/2012 Cross Country Other $200,000 Austin

12/7/2012 Learning List Other $999,999 Austin

12/7/2012 o9 Solutions Other $3,000,000 Dallas

12/14/2012 Vucomp Other $5,000,000 Dallas

12/17/2012 fisoc Other $1,724,880 Dallas

12/17/2012 Calpian Other $562,500 Dallas


10/11/2012 Yip Yap Other $220,141 Lago Vista

10/2/2012 Bullritos Investment Group Retail/Restaurants/Hospitality $2,000,000 Houston

10/10/2012 J Hilburn Retail/Restaurants/Hospitality $13,787,513 Dallas

11/16/2012 Briggio Retail/Restaurants/Hospitality 350,000 Austin

12/21/2012 Independence Brewing Company Retail/Restaurants/Hospitality

$110,000

Austin

10/9/2012 Calxeda Semiconductor $55,009,631 Austin

11/2/2012 Ambiq Micro Semiconductor $3,663,287 Austin

10/25/2012 ScanSee Telecommunications $515,000 Dallas

12/17/2012 Telefix Communications Telecommunications $123,500 Dallas

12/19/2012 Airband Communication Holdings Telecommunications $1,579,000 Dallas

$297,580,540


TXEN Funded Companies for 4th Quarter 2012

The following companies participated in the TxEN program series and raised over $1.75M in

funding.

10/24/2012 Blue Avocado $250,000

10/24/2012 Thunderbird Energetica $750,000

11/5/2012 Nightraft $275,000

12/1/2012 Bastrop Land & Cattle $500,000


Texas Startup Investment Trends

The following major trends can be seen in startup investment.

1. What is getting funded? Capital efficient deals.

Those who can accomplish the most with the least amount of capital receive preference from

investors. First time entrepreneurs need to develop a product and go to market to generate

product and market validation. There is little seed stage money for first timers. Entrepreneurs

must demonstrate a business model that can acquire customers at a low cost and scale the

business with few additional capital raises.

2. The number of deals increases but at lower raises.

Angel investing continues to evolve with the market. One of the trends seen in the market today

is the increase in the number of angel deals while the dollar investment in each deal has dropped.

This is due to several factors. The cost of starting a business has dropped dramatically over the

last ten years. In the 1990s, entrepreneurs asked for $5M to start a web company. In the 90s

entrepreneurs had to build their own server systems and buy all the computer equipment. In the

post millennium those starting a web-based business asked for $500K because they could rent

the equipment and buy time and space on a server farm already in place. In the post 2010 era,

the raise continues to drop. It’s not uncommon for some startups to use that level of funding to

start their business and gain traction. Also, there are more companies raising funding to start

their business so the competition for the investment dollar is greater. Finally, the contraction in

the financial markets starting in 2008 and 2009 has squeezed down the availability of credit

making it more difficult to find capital. This trend can also be seen in survey numbers.

According to Jeffrey Sohl of the University of New Hampshire’s Center for Venture Research in

2005 the average angel deal size was $523K. By 2010 that number had shrunk to $325K. The

number of deals done in 2005 was 49,000 which grew to over 61,000 in 2010.

http://wsbe.unh.edu/sites/default/files/q1q2_2011_analysis_report.pdf

3. Valuations -- Valuations are holding steady.

The financial meltdown of 2008-2009 saw the markets cut in half. Valuations in startups

followed the same path and fell by up to 50% in some cases. Investors in that time frame often

cut the proposed valuation in half. Since then valuations have recovered to their 2008 pre-crash

levels and have held steady with no move upward for the past year.

























4. Syndication -- Syndication with all investor types and not just angel investors.

Previously, angel investors only syndicated deals with other angel groups of the same structure,

but the trend today is toward syndication with any investor of any type. Entrepreneurs piece

together a funding deal from numerous angel groups, early stage VCs, family funds, and

individual investors not attached to angel groups.

5. Family funds—increased interest in early stage deals

There’s a renewed interest in Family Funds in early stage deals. While there’s no formal

research to indicate otherwise, anecdotal information suggests a frustration with the public equity

markets on a roller coaster ride of sentiment. Family funds are seeking to move away from

public equity markets to private ones.

6. Accelerator models are on the rise.

Microfunding through mentorship programs are growing dramatically around the country. The

Techstars/YCombinator model of 20 mentors coming together to fund and mentor a handful of

companies continues to grow. The typical mentor invests $5K for a small piece of equity and

collectively brings critical mass of expertise to five startups. This spreads the mentorship work

across several in a peer group and increases the chance of success by engaging several startups at

a time.

7. Sectors

Information technology, digital media, healthcare, mobile devices, and biotechnology are seeing

a strong surge in growth. Energy increased this quarter and may mark resurgence in early stage

investing in the sector.

8. Crowdsource funding is increasing.

With the passage of the JOBS act, there is an explosion in the number of crowdfunding websites.

As the amount of the funding raise drops and the number of deals increases many entrepreneurs

are turning to the web to crowdsource investors for their deal. Websites such as Rockethub,

Microventures, Peerbackers, IndieGoGo, and Kickstarter, cater to those using the web to find

investors and make connections.


9. Royalty-based funding is increasing among traditional angel investors.

Angel investors tired of waiting seven to nine years for an exit are seeking faster payback times

and are turning to investing cash in return for a percent of the revenue rather than equity. It is

also called revenue-based funding. This applies to deals with a predictable revenue stream and

a steady growth model.

10. Angel groups are moving to open formats.

With the growing availability of the internet and the reduced barriers to entry to startup a

company, angel groups are moving to open formats as seen by the number of websites such as

Angel List(http://angel.co/). The primary software platform used by angel groups is Angelsoft

which recently upgraded its platform and renamed itself to Gust (http://www.gust.com/) to

reposition itself to take advantage of this trend.

http://angel.co/

http://angel.co/

http://angel.co/

http://angel.co/

http://angel.co/

http://angel.co/










Texas Startup Investment Forecast

1. Investors -- there will be an increase in out of state investors in Texas. With the growth

of the Texas economy, more investors outside of Texas will start to fund Texas-based deals.

There is a growing number of out of state investors in the deal rooms especially from the

Midwest and East coast – in particular New York.

2. Valuations -- there will be an increase in valuations in the coming six months in

particular for Information technology, Mobile applications, and Healthcare companies. The

other sectors will remain the same.

3. Deal flow -- there will be an increasing number of out of state deals seeking funding in

Texas. There will be more startups moving to Texas to take advantage of the low cost business

climate and the availability of funding. Funding forums and pitch sessions with increase in

number throughout the state in 2013. Healthcare deal flow as well as information technology

will continue to see increased activity. Cleantech will continue to decline due to the high cost of

follow-on funding.

4. Exits -- there will be a shift to exiting early by selling the company in rollups rather than

waiting for the company to be acquired by a large purchaser. Startups with an exit in three years

or less will become more prevalent due to the high cost of capital required to expand further.


Business Filings by Region for 4th Quarter, 2012

The following data represents the number of new entities filed in the state of Texas for the 4th

Quarter of 2012. Business filings of new entities in the state of Texas in the 4th quarter added

29,861 new entities which is a 20% increase over the number of new entities filed in Q3, 2012.

XRANGE CORP_TYPE ECOUNT Total Q3

% of

state

North

75000 -

76999

Domestic Limited Liability Company

(LLC) 9443

Texas

75000 -

76999

Domestic Limited Liability

Partnership (LLP) 55

75000 -

76999 Domestic Limited Partnership (LP) 1237

75000 -

76999

Foreign Limited Liability Company

(LLC) 249

75000 -

76999

Foreign Limited Liability Partnership

(LLP) 4 10988 North 36.80%

75000 -

76999 Foreign Limited Partnership 39

Gulf

77000 -

77999


(LLC) 6986

Coast

77000 -

77999



77000 -


77000 -

77999


(LLC) 192

77000 -

77999


(LLP) 1 8107 Gulf 27.15%

77000 -


South

78000 -

78599


(LLC) 3035

Texas

78000 -

78599



78000 -

78599 Domestic Limited Partnership (LP) 424 3474 South 11.63%

78000 -

78599


(LLC) 33

78000 -


Central 78600 - Domestic Limited Liability Company 5069


78999 (LLC)

Texas

78600 -

78999



78600 -


78600 -

78999


(LLC) 38 5513 Central 18.46%

78600 -


West

79000 -

80000


(LLC) 1447

Texas

79000 -

80000



79000 -


79000 -

80000


(LLC) 35 1748 West 5.85%

All of

Texas


(LLC) 25985

All of

Texas



All of

Texas Domestic Limited Partnership (LP) 3148

All of

Texas


(LLC) 545

All of

Texas


(LLP) 5 29861

All of

Texas Foreign Limited Partnership 76


Deal Activity for Texas (by Gust)

The following information on dealflow through Texas-based angel networks was provided by.

Texas Deal Activity: Q4 2012

Summary of Deal Activity

In the fourth quarter of 2012, there were 1021 funding applications forwarded to investor

groups in Texas.

The leading industry in Texas was Internet Web Services, accounting for almost

9% of funding applications. Consumer Products/Services and Media

Entertainment industries followed closely behind.

The majority of applicants both in Texas and across the US have a product fully

ready at the time the entrepreneur applies for funding. In Texas, 4% of

entrepreneurs have $1M-3M in revenue, whereas in the US, only 1% of

entrepreneurs have the same range of revenue when they apply for funding.


Breakdown of Funding Applications by Company Stage


Top Deal-making States in the US

Gust provides the global platform for the sourcing and management of early-stage investments.

Gust enables skilled entrepreneurs to collaborate with the smartest investors by virtually

supporting all aspects of the investment relationship, from initial pitch to successful exit. Gust is

endorsed by the world's leading business angel and venture capital associations, and powers over

1,000 investment organizations in 65 countries. More than 160,000 start-ups have already used

the platform to connect and collaborate with over 40,000 individual accredited investors. The

company was founded in 2004 under the name Angelsoft and is privately held. Gust is based in

New York, New York, with a development center in Vancouver, British Columbia, and

European office in Paris, France. (http://gust.com/)

Q3 2012 Q4 2012

1. California 21% 1. California 22%

2. New York 12% 2. New York 12%

2. Florida 8% 2. Florida 8%

4. Texas 7% 4. Texas 6%

5. Illinois 3% 5. New Jersey 3%

http://gust.com/


References University of New Hampshire Center for Venture Research Report


Angelinvestmentnetwork.net

http://www.angelinvestmentnetwork.net/2011-11/angel-investment-network%E2%80%99s-

weekly-twitter-roundup-27

Form Ds website:

http://www.formds.com/filings/newest

http://www.investorscopes.com/

Gust

http://gust.com/ Gust provides the global platform for the sourcing and management of early-

stage investments. Gust enables skilled entrepreneurs to collaborate with the smartest investors

by virtually supporting all aspects of the investment relationship, from initial pitch to successful

exit. Gust is endorsed by the world's leading business angel and venture capital associations, and

powers over 1,000 investment organizations in 65 countries. More than 160,000 start-ups have

already used the platform to connect and collaborate with over 40,000 individual accredited

investors. The company was founded in 2004 under the name Angelsoft and is privately held.

Gust is based in New York, New York, with a development center in Vancouver, British

Columbia, and European office in Paris, France.

Contact Us

For more information about startup funding in the state of Texas please contact

Hall T. Martin


512-656-9487

[email protected]
























http://www.angelinvestmentnetwork.net/2011-11/angel-investment-network%E2%80%99s-weekly-twitter-roundup-27











































http://gust.com/

Documents

TxEN Startup Funding Report Q4 2012 Compiled by Texas ......Texas Entrepreneur Networks Page 6 Funded Companies by Region for the 4th Quarter 2012 Date Target Sector Funding City 12/28/2012