Success, in the short-term, will be measured by the quality of deal flow and the number of companies funded. In the long-term, ROI for individual Members and for CTAN portfolio investments as a whole will be the defining measure of CTAN’s success.
Now CTAN is an independent 501(c)(6) membership organization and has a full-time Executive Director and a full-time Investment Manager, as well as a fully engaged set of members and Board members whose time, effort, and involvement allow CTAN to fulfill its mission for investors and entrepreneurs.
Austin and Central Texas benefits from having an organized group of angels that aid local entrepreneurs in need of capital and/or expertise to build their businesses. In an era when venture capital groups are reluctant to fund early-stage startups, angels are a necessary funding option that keeps the startup environment thriving. In Central Texas, there is a large pool of high-net-worth individuals with business experience who are looking for investment opportunities and who enjoy being involved with entrepreneurial ventures. CTAN provides a forum for such individuals to cooperatively source and vet deal flow.
CTAN is funded through membership dues, entrepreneur application fees, and sponsorships by local organizations and professional businesses. The funding application process is open to all entrepreneurs; however, the characteristics of an appropriate angel deal are publicized on our website, and deals which do not fit these criteria are discouraged from applying.
The screening procedure for applicant companies is membership driven, and all members are encouraged to participate in the process. Selected companies present to the full membership in one of five funding cycles during the year. At these meetings, CTAN members may also hear follow-up presentations from CTAN portfolio companies and/or presentations from deals in process at other Texas angel networks. In addition, CTAN pitch meetings may include short presentations from entrepreneurial investment opportunities that have received investment capital from a member or members.
CTAN strives to nurture close relationships with other local entrepreneurial organizations and to be full participants in the Austin entrepreneurial scene. To this end, CTAN maintains relationships with business schools at regional universities, local incubators, entrepreneurial organizations, trade organizations for area industries, and early-stage investment professionals. In addition, CTAN is part of the Alliance of Texas Angel Networks (ATAN), a statewide cooperative of angel networks, and works closely with other Texas networks for deal syndication and the sharing of due diligence efforts. CTAN is also a member of the national Angel Capital Association (ACA) and shares organizational and network management ideas with like-minded groups from all over the country.
• Prospective investment opportunities are not offered by or endorsed by CTAN.• Members are responsible for making individual and independent investment decisions, both as to the suitability of an investment and the amount of any investment, based on their own individual evaluation of the merits of the proposed investment offering.• The network acts solely as a facilitator of the investment process, providing members with a forum where members may, individually and cooperatively, meet, view, analyze, and monitor investment opportunities.
• Believe that the most interesting investments are those with the potential for a high return and that reflect prevalent or disruptive industries;• Have a sense of social responsibility and enjoy community involvement; • Enjoy taking a role in the entrepreneurial process and acting as mentors to entrepreneurs;• Invest their own money and in relatively smaller amounts per investment than do venture capitalist firms;• Maintain a diversified portfolio and take a long-term view of their investments;• Are committed to the long-term success of their portfolio companies and wish to remain involved with their portfolio companies to the extent that they can contribute to the company’s success;• Understand the role of angel investment within the early-stage investment economy and the potential risks and rewards of early-stage investing; • Enjoy working with other intelligent angel investors to cooperatively vet deals, negotiate terms, and provide value as investors.
Members are also expected to make a significant contribution to the operation of the network, including actively participating in due diligence, leading the diligence efforts on an investment opportunity, identifying investment opportunities, and/or serving on the Board of Directors or Advisory Boards of portfolio companies. Members must actively participate in the process in order to share in the benefits of the organization, and members are expected to report their investment activity and volunteer hours to CTAN leadership.
CTAN asks that each prospective member intend to invest at least $25K into CTAN companies annually.
$4,000 annually for a Group Membership (Family Office, Investment Group, or Angel Network)This membership level includes full membership benefits for up to 3 designees to represent the group and receive all the benefits of full membership for each group representative. Group memberships are available for family offices, investment groups, and angel networks.
$1,000 annually for an Out-of-State Individual MembershipThe individual member must reside full-time outside the state of Texas. This is a full membership in CTAN, including all pitch meetings, education events, social gatherings, and much more. Members (and their spouse, if applicable) receive an account on ProSeeder, the online platform used for evaluating entrepreneur applications, member event RSVPs, and communicating among CTAN members.
$3,000 annually for an Out-of-State Group Membership (Family Office, Investment Group, or Angel Network)This is for family offices, investment groups, or angel networks whose representatives reside full-time outside the state of Texas. This membership level includes full membership benefits for up to 3 designees to represent the group and receive all the benefits of full membership for each group representative. Group memberships are available for family offices, investment groups, and angel networks.
NOTE: New member dues for the first year of membership are pro-rated to the month in which you join. Memberships renew annually on January 1.
• Qualify as an accredited investor
;• Have relevant investment experience and/or be interested in learning from their peers
;• Complete the CTAN Membership Agreement
;• Agree to abide by and sign the CTAN Rules of Membership and Conduct;• Exhibit a real desire to participate in the startup ecosystem and mentor entrepreneurs
;• Meet with the Executive Director to complete the member qualification process
;• Pay the current annual dues; and• Create a profile on CTAN's online platform, ProSeeder, and actively use the platform as part of your membership.
For further information and/or questions regarding the submission of this application, please contact:
Claire England, Executive Directorclaire@centraltexasangelnetwork.com
Mark Thorsen, Investment Managermark@centraltexasangelnetwork.com