Capital Factory

The Center of Gravity for Texas Entrepreneurs

Capital Factory is a multi-city venture capital firm, startup accelerator, and coworking provider that operates as the primary connecting hub for technology and frontier innovation in Texas. Founded in 2008 by Joshua Baer, it has backed hundreds of companies (including notable names like WP Engine, The Zebra, and Colossal Biosciences) and functions as a massive public-private gateway for commercial and defense technologies.

Physical Space & Footprint

• The Austin Hub: Located in downtown Austin (701 Brazos St), Capital Factory occupies over 81,000 square feet of collaborative office space.
• Amenities: The facility features open coworking spaces, dedicated desks, private offices, fully equipped meeting rooms, a video recording studio, a classroom, and event spaces with a standing capacity of up to 400 people.
• Texas Expansion: While Austin is the flagship, Capital Factory has established physical presences and programmatic partnerships across the “Texas Triangle,” including Dallas and Houston.

Funding & The Venture Ecosystem

• Most Active Investor in Texas: Capital Factory has consistently been ranked as the most active early-stage investor in the state of Texas.
• The Investment Vehicles: It deploys capital through targeted funds, including the Texas Fund I & II and the Fellowship Fund, focusing on early-stage seed and Series A rounds.
• Equity Accelerator: Startups accepted into the flagship Accelerator program receive direct investment, intense mentorship, and hosting credits in exchange for a small equity stake (typically 3% to 8%).

The “All Access” Network

Instead of a traditional, rigid cohort schedule, Capital Factory operates the All Access network. This is an ongoing membership ecosystem that connects more than a thousand active startups to:

• Mentorship: Direct matchmaking with hundreds of successful founders, operators, and active angel investors.
• Corporate Innovation: Warm introductions to Fortune 500 companies looking to acquire, pilot, or invest in emerging technologies.
• Government & Defense Contracting: A dedicated pipeline that bridges commercial startups with government defense agencies, acting as an official hub for military innovation groups like AFWERX, Army Futures Command, and DIU (Defense Innovation Unit).

Key Technological Frontiers

While originally focused primarily on B2B SaaS and enterprise software, Capital Factory has heavily leaned into deep-tech and hardware frontiers:

• Space & Aerospace: Supporting infrastructure-scale developments (e.g., Orbit Fab, Astroport Space Technologies).
• Defense & Dual-Use Tech: Helping startups build security and intelligence systems (e.g., Saronic Technologies, Darkhive).
• Biotech & Deep Science: Backing revolutionary platforms (e.g., Colossal Biosciences’ de-extinction efforts, Paradromics’ brain-computer interfaces).
• Energy: Focusing on advanced clean tech and deep fission.