Texas is known to have an amazing startup culture, especially in the cities like Dallas, Austin, and Houston. The state has a population of 27 Million people and is home to many huge brands.
Cities like Austin have been featured as the fastest-growing metropolitan areas for 8 consecutive years and are being globally recognized as a hub for tech startups.
However, many businesses are still confused about where to secure the investment and whom to pitch.
To solve your problem, I have prepared the following list of the top 6 angel investors in Texas, along with some tips on how to pitch to angel investors.
Top 6 Angel Investors in Texas
Following is a list of some of the top angel investors and venture capital firms in Texas.
Aneesh Chopra
LinkedIn: Aneesh Chopra
Investor Type: Individual Investor
Investment Interests: Tech, Healthcare, and Finance.
Investment Stage: Early and Seed
Aneesh Chopra is an individual angel investor who has been involved in the startup ecosystem. He has invested in around 5 and focuses on ventures that have decent growth potential startups.
A little about his background; Aneesh Chopra is experienced in technology and public service. He served as the first Chief Technology Officer of the United States and also served as Virginia’s Secretary of Technology under Governor Tim Kaine.
When funding startups, Aneesh Chopra attends different startup events and selects businesses that are led by experienced individuals. He only invests in startups that are at the growth stage and have the potential to generate at least 4x ROI within 2 years.
Aside from investor meetings, Aneesh Chopra also participates in fundraisings and provides mentorship to his portfolio companies. The investment range of Aneesh Chopra is between $150,000 to $1M. Two of his portfolio companies are:
Abridge: Abridge is a health tech startup that uses machine learning to help patients stay on top of their health by capturing the details of their health conversations. It offers an audio-based system to record and summarize medical conversations. Abridge’s AI converts a patient-clinician conversation into a structured clinical note draft in real-time and integrates it seamlessly into the Electronic Medical Record (EMR).
Stride Health: Stride Health is a provider of an insurance recommendation platform designed to offer health insurance services. The company offers tools to build a personal health profile and a health plan.
Michael Sutton
LinkedIn: Michael Sutton
Investor Type: Individual Investor
Investment Interests: Software, Tech, and Digital Businesses.
Investment Stage: Seed
Michael Sutton is an experienced angel investor who has been involved in the startup ecosystem for 6 years. He is the founder of StoneMill Ventures and has a long history in cybersecurity. He was previously the CISO at Zscaler, a company that pioneered the Security-as-a-Service space. Plus, Sutto has also helped build SPI Dynamics (acquired by HP) and iDEFENSE (acquired by VeriSign).
Talking about his investments, Michael Sutton only invests in startups that have a positive future and can generate 5x ROI. He also has a strict focus on investing in cybersecurity startups that introduce unique ideas into the market.
Micheal Sutton's investment range is around $1M, with most of his investments being around $750,000. Three of his recent investments are:
Orca: Utilizes unique SideScanning™ technology to seamlessly deliver comprehensive full-stack visibility into your entire cloud infrastructure and assets at a fraction of the time and cost of alternative approaches.
runZero: Provides full visibility into your coverage, allows you to build what you want, control your data, get the security capabilities you need for however long you need them, and pay only for what you use.
Greynoise: Identifies Internet background noise caused by benign or previously identified scanning sources to streamline and prioritize threat analysis.
Houston Angel Network
Website: Houston Angel Network
Investor Type: Venture Capital Firm
Investment Interests: Management Solutions and Healthcare.
Investment Stage: Seed
The Houston Angel Network (HAN) is an angel network. The network is headquartered in Houston and has funded a total of 400 startups.
Talking about their screening tests, the investors at HAN have a big list of requirements that include:
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The company must be an early-stage company seeking financing (pre-seed, seed, bridge, Series A) in the form of equity, debt, or debt with an equity component (i.e., convertible debt or debt with warrants).
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The company must have a valuation or convertible note cap below $10M.
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In order to be seriously considered, a company must have a completed, working prototype and have market validation (pilot, beta users, revenue).
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HAN does not review professional services and consulting firms, real estate developments, films, bars, restaurants, or spas.
Similarly, Houston Angel Network also arranges many startup events. They have launched an Angel Academy to offer educational services.
The investment range of Houston Angel Network is between $100,000 to $1M. Some of their portfolio companies are:
Procyrion: Procyrion is a medical device company developing a catheter-deployed circulatory assist device intended for long-term treatment of chronic heart failure1. They secured funding in a Series E round on Feb 5, 2024.
Onit: Onit is a global leader of enterprise workflow solutions for legal, compliance, sales, IT, HR, and finance departments. Their solutions transform best practices into smarter workflows, better processes, and operational efficiencies.
Optical Entertainment Network: Optical Entertainment Network is a company that provides IPTV and broadband services. They offer a wide range of channels and services, including high-definition television (HDTV), video on demand (VOD), and digital video recording (DVR).
GPG Ventures
Website: GPG Ventures
Investor Type: Venture Capital Firm
Investment Interests: Healthcare
Investment Stage: Seed
Green Park and Golf Ventures (GPG Ventures) is a venture capital firm that was founded in 2011. The firm was founded by Clay Heighten, M.D., and Carl Soderstrom and has made 88 investments.
Similarly, discussing their investment interests, GPG Ventures takes a strong interest in healthcare-related companies. The announcement from the CEO has made it clear that they will not consider any other ventures aside from the healthcare industry.
Moreover, GPG Ventures is built on over 60 years of operational and financial experience and seeks investment opportunities that offer above-market returns for its investors. They deliver strategic solutions, financial backing, and a reliable network to their portfolio companies.
The investment range of Green Park and Golf Ventures ranges between $100,000 to $1M. Some of their portfolio companies are:
Motive: Motive, formerly known as KeepTruckin, is a technology company that builds products to improve the safety, productivity, and profitability of businesses that power the physical economy1. It now serves more than 120,000 businesses across a wide range of industries, including trucking and logistics, construction, oil and gas, food and beverage, field service, agriculture, passenger transit, and delivery.
MURAL: MURAL is a collaborative intelligence company that connects teams to unlock their potential, increasing the innovation capacity of the enterprise. MURAL creates a culture of effective collaboration where everyone is connected, contributing, and empowered to deliver business-driving outcomes.
Rhombuz
Website: Rhombuz
Investor Type: Venture Capital Firm
Investment Interests: Tech and Digital Businesses
Investment Stage: Seed
Founded in 2016 by Jony N, Rhombuz is a recently founded venture capital firm that funds Texas-based startups. The VC firm invests in media and tech-related startups that have the potential to grow and thrive in the markets.
The team of investors arranges several growth programs and pitching competitions throughout the year. Startup leaders have to fill out online forms before applying, and once they get selected, they have the opportunity to give live presentations.
Similarly, the angels at Rhombuz prefer startups that can promise huge profits and are led by individuals who have 5-8 years of experience in the relevant industry.
The investment range of Rhombuz lies between $300,000 to $3M. Among their investments, some investments include:
FZ Sports: FZ Sports is a technology firm that connects sports fans to the information they want to see34. The company was founded in 2021 and has raised a total of $74M in funding.
WealthSimple: Wealthsimple is a Canadian online investment management service. The firm offers financial planning, wealth management, securities, and advisory services6. As of January 2024, Wealthsimple manages over CAD$30 billion in assets.
Pipeline Angels
Website: Pipeline Angels
Investor Type: Venture Capital Firm
Investment Interests: Tech, Media, Healthcare, and Digital Businesses.
Investment Stage:
Pipeline Angels is another famous Houston-based investor group. The network is well known because of its strict focus on neglected gender groups such as intersex.
Every year, Pipeline Angels organizes around 2 pitching competitions, boot camps, and startup accelerators to boost the community. The team of investors usually funds tech, healthcare, media, and digital businesses.
The investment range of Pipeline Angels is between $100,000 to $500,00, as their main focus lies on early and seed-stage startups.
Wrap-Up:
In conclusion, it is important to understand that angel investors will invest their capital into startups that show determination to grow.
When attending pitching competitions, know your competitors and, most importantly, know the investors to whom you’re pitching. Understanding the investors will allow you to present your startup as the most suitable investment.
Frequently Asked Questions
Q: How to pitch to angel investors?
A: To pitch to angel investors successfully, prepare a concise and engaging presentation about your startup.
Clearly present your business idea, market opportunity, unique value proposition, and financial projections. Focus on showing the potential for growth and profitability. Most importantly, explain how their investment will be utilized and the benefits they can expect.
Q: How Do Angel Investors Help Businesses Grow?
A: Angel investors play a crucial role in the growth of businesses by providing essential funding during the early stages. Their financial support enables startups to develop products, scale operations, and expand their market reach.
Moreover, angel investors bring valuable expertise and networking opportunities, contributing to the overall success and sustainability of the ventures they back.
Q: What are different startup stages?
A: Startup stages are the evolution of a business, including ideation, validation, and development. The proper understanding of these stages allows the entrepreneur to measure risk, ROI, and the startup's progress.
