Investor networks aim to boost startups' success

Startups and small businesses can use options such as angel investor networks and "crowdfunding" to get the resources they need to succeed, Texas Entrepreneur Networks Director Hall T. Martin told Southwest Austin professionals March 12.

TEN lists resources for startup companies on its website and can connect entrepreneurs with contacts who can help startups get up and running, Martin said, noting the firm focuses on working with Texas-based companies.

"What I found about the Austin community is it's a very rich community," he said. "So one of the reasons why I cataloged all the resources in Austin and all the networking groups and mentoring groups is that I can point out to [entrepreneurs] the four or five groups that they need to go and spend time with."

Speaking to members of the South Austin Civic Club at St. David's South Austin Medical Center, Martin explained that angel investors are high–net worth individuals who invest in companies in hopes of a higher return. Small-business owners can reach out to angel networks to increase their chances of finding the right funder, he said.

"Crowdfunding" is also growing in popularity, he said. Nonaccredited investors can make smaller donations via websites such as Kickstarter and IndieGoGo to help a startup achieve its goal. As an example, Martin cited one case in which a business received 14,000 donations of $35 each and used the funds to launch a video game.

"Everybody wants to invest in the next Facebook or Google, but the odds of getting there are challenging," Martin said. He noted his company plans to introduce its own crowdfunding online portal to connect Texas-based investors with local startups.

The next scheduled SACC speaker is Albert Hawkins, one of the co-chairs of Austin ISD's Citizens' Bond Advisory Committee, which developed the AISD bond package that Austinites will vote on in May. More information about SACC is available at www.southaustincivicclub.org.