Thank you in advance for considering applying to Central Texas Angel Network (CTAN).
CTAN is one of the largest and most active Angel Investing groups in the nation with 185 members, and $93.4 million invested in 161 companies. We are a nonprofit organization of accredited investor members, and we run five formal Funding Cycles per year.
Please read below for important information to consider prior to completing your application. We also recommend you attend our free Mentor Hours before applying to CTAN.
CTAN 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 which 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.
CTAN charges an application fee of $250, due prior to submitting your application. Important: CTAN does NOT offer refunds. We recommend you clearly understand the funding cycle process, as well as the pros and cons of applying to an angel group before submitting an application.
Before applying to CTAN, please check the Funding Cycle schedule. Pitches cannot be rescheduled, so we encourage you to be sure you’re available for all events.
Each Funding Cycle is 10 weeks long. Please review the structure below before you apply:
WEEK 1: Funding Cycle Forum & Online SIG Voting
Prior to Week 1, companies apply via ProSeeder, our online platform. Among other questions, entrepreneurs classify their business in one of five industry sectors: B2B Software, B2C Software, Hardware/Other, Life Sciences, or Consumer Products. CTAN members group themselves into these same Sector Interest Groups (SIGs) based upon their interest or expertise in those sectors.
NOTE: Your application is critical to your potential success with member voting, so we encourage you to give it careful attention. We also encourage you to upload a presentation deck and any other materials (e.g., video, management team bios) that members may find helpful in evaluating your company.
Funding Cycle Forum: This is an exclusive, two-part event for those companies applying to the current funding cycle, which includes 1) a workshop at which entrepreneurs learn from a member investor and a funded portfolio founder how best to navigate CTAN’s process and pitching to our member investors, and 2) an opportunity to ask questions of CTAN investors in your industry group. After this event, you’ll have a few days to update your application using the investor feedback you received, prior to online voting by CTAN members.
Online SIG Voting: CTAN members review entrepreneur applications and vote online for companies that pique their interest. If enough members in each Sector Interest Group (SIG) express interest in a company, we invite the company to pitch to members of that SIG the following week.
WEEK 2: SIG Night
Selected companies pitch in person to each SIG, with time for Q&A with investors. If you are unable to attend in person, you may send in a pre-recorded video pitch, then we’ll phone you in for Q&A. (Note: We highly recommend you pitch in-person.) At the end of the event, our members decide if they are interested enough to move into our initial due diligence phase, Staff Review. If the answer is yes, we will ask you to fill out our Initial Due Diligence Checklist. After reviewing it, we’ll schedule a Staff Review meeting with you.
WEEKS 3-4: Upload DD Checklist & Staff Review
Selected companies are tasked with uploading a completed Initial Due Diligence Checklist to their deal room in ProSeeder on Monday, the same day you receive notification that you’re invited to Staff Review. This serves as the basis for Staff Review the following two weeks. (Note: We highly encourage you to begin working on the checklist when you apply to CTAN, as this is a critical component of our process.)
Selected companies meet with CTAN staff and select members of the SIG to ensure there are no “deal killers” (such as $500k CEO salaries, etc.) that would prevent a company from moving forward. These meetings may be in-person or remote.
WEEK 5: Showcase Meeting
Companies that make it through Staff Review are invited to present to the broader CTAN membership at the Showcase Meeting, which includes a cocktail hour for networking with investor members. If enough CTAN members express continued interest, we’ll schedule due diligence meetings with your team and the members.
WEEKS 6-9: Due Diligence
Selected companies meet with CTAN staff and an interested group of CTAN investors for full due diligence. From the interested investors, a Deal Lead needs to be chosen to continue moving through our process. This Deal Lead will work with CTAN staff and the company to better understand the business model and value proposition. In due diligence, we conduct customer reference calls, competitive analysis, market sizing, team reference calls, etc. Again, we prefer in-person due diligence meetings, but we can accommodate remote meetings as well.
WEEK 10: Term Sheet
The member Deal Lead works with the company to arrive at a term sheet. Once a term sheet has been agreed upon, the due diligence findings are made available to members and we soft-circle interest from the full membership. If we are able to soft-circle interest, we begin working with legal counsel to close the deal.
NOTE: Members cannot soft-circle interest prior to this point. They also must soft-circle interest only to the CTAN Deal Lead and Executive Director, not directly to the company, due to the group nature of our process.
We are open to applicants from out-of-state; however, some CTAN member investors do have a preference for Texas-based companies or those with a Texas connection.
CTAN charges an application fee of $250, due prior to submitting your application. This fee provides you the following:
- The ability to attend a three-hour Funding Cycle Forum in which experienced angel investors explain the do‘s and don’ts of pitching to investors and describe CTAN’s process in detail.
- Also, at the Funding Cycle Forum, 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 185 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 members invest $200,000 or more in your company, CTAN collects an Administrative Fee of $5,000 upon closing. If CTAN members invest $400,000 or more in your company, CTAN collects an Administrative Fee of $7,500 upon closing.
If you have any questions, email us at director[at]centraltexasangelnetwork.com.
“It only takes 1…”
It really does only take one interested investor to make a huge difference. While a majority of CTAN portfolio 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.