Thank you in advance for considering applying to Central Texas Angel Network (CTAN).
CTAN is one of the largest Angel Investing Networks in the nation with over 165 members, and over $75 million invested in more than 135 companies. We run 5 formal Funding Cycles per year. There are a few things we’d like you to consider prior to completing your application.
CTAN specifically evaluates companies that fit the following criteria:
- Unique and disruptive – Something truly unique that is not a “me too” type of product or service, and stands out from competition.
- Scalable – Able to grow and expand quickly. We do not fund “lifestyle businesses” or individual franchises.
- Defensible – Either through intellectual property or team skill, the business is defensible from copycats.
Each Funding Cycle is 10 weeks long. Please take a moment to review the structure below:
- Week 1: Application deadline. On the application, among other questions, you will be asked to classify your business as one of five industry sectors: Business to Business Software, Business to Consumer Software, Hardware, Life Science, Consumer Products / Other. CTAN members group themselves into Sector Interest Groups (SIGs) based on their interest or expertise in those sectors. So make sure you choose the appropriate industry sector for your business.
- Week 2: CTAN members review your application and vote online for companies that pique their interest. If enough members in your SIG express interest in your company, we schedule a meeting for you to meet members of that SIG.
- Week 3: Selected companies meet in person with members of their SIG (we can accommodate remote meetings upon request). At the end of the meeting, the members in attendance decide if they are interested enough to move into due diligence, and if there’s someone among them willing to be Deal Lead to lead the due diligence effort. If the answer is yes to both questions, then we move into 3 weeks of due diligence with your company.
- Weeks 4-6: CTAN staff, your Deal Lead, and other members of your SIG conduct due diligence where we work with you to better understand your business model and value proposition. This includes customer reference calls, competitive analysis, market sizing, team reference calls, and the like.
- Week 7: Your Deal Lead works with you to arrive at a Term Sheet, and soft circles interest from your SIG. If we are able to soft circle interest, we schedule for you to present to the broader CTAN membership at the Showcase Meeting.
- Week 8: Showcase Meeting where we bring companies from each of the SIGs that have arrived at a Term Sheet and soft circled interest, to present in person to the broader CTAN membership to see if other members are interested in participating in the deals.
- Week 9: Soft circle additional member interest.
- Week 10: Work with legal counsel to close the deal.
While it’s not a hard requirement, many CTAN investors have a strong preference for Texas-based companies.
CTAN charges an application fee of $250 due prior to submitting your application This fee provides you the following:
- The ability to attend a two hour Entrepreneur’s Workshop in which experienced angel investors explain the do‘s and don’ts of pitching to investors.
- Also at the Entrepreneur’s Workshop there is a presentation by an entrepreneur who has successfully received funds from CTAN explaining the process from his/her point of view.
- Entry to CTAN’s Funding Cycle where your application will be sent to the 165 investors in our network.
- Two attempts at the Funding Cycles of your choosing, if you don’t receive funding on your first attempt.
If CTAN invests $200,000 or more in your company, CTAN collects an Administrative Fee of $5,000 upon closing. If CTAN invests $400,000 or more in your company, CTAN collects an Administrative Fee of $7,500 upon closing.
If you have any questions, please contact Mark Thorsen: firstname.lastname@example.org.
“It only takes 1…”
It really does only take one interested investor to make a huge difference. While a majority of CTAN-funded companies have progressed through the entire funding cycle, we typically see some additional companies receive funding each cycle which didn’t make it through the entire process. Perhaps the company didn’t receive enough votes, but a handful of members remained intrigued. We do not prevent interested members from conducting due diligence and investing outside of the process; in fact, we encourage it — as long as the company is not moving forward in CTAN’s formal funding cycle. We seek to help as many companies get funded by our member investors as possible.