Austin continues to attract new venture capital firms, growth equity deals and a steady stream of new startups. But, in terms of venture firms, Central Texas still lives in the shadow of the nation's top investing tech hubs on the east and west coasts.
When it comes to angel investing, however, Austin is home to the nation's most active group -- Central Texas Angel Network.
In a new report, the investor group said it had invested $14.7 million into 40 companies in 2018. It marked the biggest year for the organization since it was founded in 2006 -- the next closest in their books was 2014, when CTAN members pumped $14.6 million into 33 deals.
Of the deals in 2018, 13 were into new companies -- with the other 27 re-fueling investment into startups it signed terms with in prior years.
CTAN invests in a wide variety of companies, including biotech, CPG, telecom and software. More than 25 percent of its investments are into startups with a woman or ethnic minority founder.
CTAN highlighted a few of its new investments from last year, including the following:
- ClosedLoop.ai — AI-enabled data science platform and catalog of predictive models helps healthcare organizations improve clinical and financial outcomes.
- Haxiot — Secure, reliable IoT connectivity for enterprise.
- Rocket Dollar — Alternative investing in self-directed solo 401(k) or self-directed IRAs.
- Salarius Pharmaceuticals — A biotechnology company developing targeted therapies to treat pediatric and other cancers, including advanced solid tumors.
- TeVido BioDevices — A skin therapy biotech company using cellular therapy in custom grafts and procedures to restore lost pigment.
- ThisWay Global — AI technology for talent acquisition and sourcing professionals, with a strong focus on diversity.
On the investor side, the group's 185 or so members have enjoyed several notable exits, including a $98M IPO last June for Xeris Pharmaceuticals, which develops liquid-stable injectable drugs used for hypoglycemia and other disorders. The organization logged four exits last year, which brings its total exit list to 29.
Overall, CTAN Executive Director Claire England said those exits surpass the national return average for angel investments, which she attributes to careful vetting, the level of expertise in its membership and being in an area with a steady stream of startups.
Last year, the organization surpassed the $100 million mark in total investments -- it has pumped $108 million into 174 companies since its founding.
While CTAN had the most dollars invested in 2018, according to the Angel Capital Association, PitchBook reported that the Houston Angel Network logged one more deal than CTAN to be named the most active investors in the state since 2010 with 145 deals compared to CTAN's 144.
Austin's Capital Factory came in third on that list, with 97 deals logged.
CTAN recently closed its most recent funding cycle. Its next cycle starts this summer, and the application deadline is Aug. 15.
