Angel Investors in Dallas: A Guide to Finding Funding

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Angel investors in Dallas are a great resource for startups looking for funding. The Dallas angel investor network is one of the largest in the country, with over 100 groups and more than 1,000 individual investors.

Dallas angel investors typically invest between $25,000 and $500,000 in startups, with an average investment size of around $100,000. They often look for startups with high growth potential and a strong management team.

To find angel investors in Dallas, you can start by attending networking events and conferences, such as the annual Dallas Angel Investor Summit. You can also search online for angel groups and networks, such as the Dallas Angel Network or the North Texas Angel Network.

Angel Investors in Dallas

Angel investors in Dallas can be a great resource for startups looking to gain funding and guidance.

Blossom Street Ventures is a prominent group of angel investors in Dallas, focusing on startups with $2 million to $30 million of run-rate revenue and year-over-year growth ranging from 20% to 50%+.

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Cowtown Angels is a program of TechFW, a non-profit organization dedicated to increasing the growth of the local business community, and they have a broad investment focus across various industries.

Dallas Venture Capital (DVC) typically invests in startups ranging from $500,000 to $5 million, providing the necessary capital to fuel their growth and development, and they have a particular interest in the new tech space.

Blossom Street Investing

Blossom Street Investing Group is a prominent group of angel investors in Dallas. They focus on startups with $2 million to $30 million of run-rate revenue and year-over-year growth ranging from 20% to 50%+.

Their approach is pragmatic and economic, seeking startups with a clear path to success. They are not "unicorn hunters", meaning they don't focus on startups with unrealistic expectations.

Blossom Street Ventures' portfolio includes software, marketplaces, and e-commerce ventures. They invest in startups with strong revenue growth potential.

They are oriented on startups with $2 million to $30 million of run-rate revenue and year-over-year growth from 20% to 50%+ depending on revenue.

For more insights, see: Angel Investment Group

Cowtown

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Cowtown Angels is a program of TechFW, a non-profit organization dedicated to increasing the growth of the local business community. They focus on investing in promising startups and educating future entrepreneurs.

Cowtown Angels have a broad investment focus across various industries, seeking to drive regional economic growth. They can invest in a wide range of industries, making them a great option for startups with diverse business ideas.

The advantage of Cowtown Angels is that they can interact with entrepreneurs as investors, mentors, and help speed up the growth of the startup. This unique approach sets them apart from other angel investor networks.

Cowtown Angels strive to help early-stage businesses connect with local angel investors to stimulate economic growth in the state of Texas. They believe in creating more jobs in the city and facilitating the conversation between bright ideas and funding.

If you're looking for an investment from Cowtown Angels, you can find full instructions on their site. They're a leading angel investor network in Fort Worth Dallas, dedicated to helping early-stage businesses grow and thrive.

Tech Wildcatters

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Tech Wildcatters is a renowned angel investor group in Dallas that loves to invest in projects related to healthcare, heavy equipment, architecture, engineering, and retail.

The screening process for Tech Wildcatters is tough, and most individuals fail to present an exceptional idea, so it's recommended to understand the basics of ways to pitch to angel investors before attending the pitch contest.

Tech Wildcatters angels value a person's ambition and faith in their project, and they look for companies or startups that are trying to build a future.

Group mentor and angel investor Ryan Scripps excelled in investment analysis, planning, and business development, and his main industry experience is in healthcare, but he also has experience in heavy equipment, architecture, engineering, and retail.

The investment program of Tech Wildcatters follows a systematic and common approach, from discovery to scaling and funding.

Tech Wildcatters is known to be a popular angel investors group in Dallas, with accredited investors who look for investing in startups at the seed stage within the space economy of Dallas.

This group of angel investors is looking for startups that are trying to build a future, and they value the ambition of the person and faith in the project.

Discover more: Angel Group Funding

Investment Process

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Angel investors in Dallas often follow a structured investment process to evaluate potential startups. This process typically begins with research, where they identify and screen potential investment opportunities.

They may use metrics such as the startup's revenue growth rate, customer acquisition cost, and retention rate to gauge its potential for success. In some cases, angel investors may also conduct due diligence to verify the accuracy of the startup's financial statements.

Angel investors in Dallas may also consider the startup's management team, product or service, market size, and competitive landscape when making investment decisions.

Intriguing read: Business Angel Startup

SVP

SVP Dallas is an angel investor group that has invested over $3 million in more than 25 local nonprofit organizations.

They have attracted hundreds of partners to support the cause, changing the face of the startup community and providing hope to many entrepreneurs.

SVP Dallas angel investors are the oldest in Dallas, with a wide group of investors who have the capital and expertise to help other startups at an early stage.

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This angel investors group started in 2000 and has invested billions of capital in various startups, including Fintech, healthcare, B2B, entertainment, and Media related startups.

The key point of SVP Dallas angel investors is to raise community leaders to enhance the lives of people and social interactions.

SVP angel nurtures effective philanthropy, enforces non-profits, and invests in innovative solutions.

Typical Investment Timeline

Angel investments can last anywhere from a few months to several years, depending on the startup's growth trajectory.

The investment timeline for angel investors can vary greatly, but it's typically made in the early stages of a startup's development.

Angel investors can expect to hold their investment for 5-15 years before seeing a return, which is why it's essential to have a solid plan for growth and scalability.

Angel investors often get paid out during a liquidity event, such as an IPO or acquisition, but some are now negotiating for alternative payback paths, like a secondary market or dividend payments.

These alternative payback paths can create conflicts of interest with your business, so it's crucial to negotiate terms carefully with your angel investors.

Commission Rate

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Angel investors typically invest between $5,000 and $150,000 per deal.

The commission rate, or percentage of equity taken, can vary widely depending on the startup stage and negotiating skills of the parties involved.

For example, angels may target 1-5% in the company, but this can change based on the valuation of the company and the amount of investment.

The exact percentage of equity taken can depend on many factors, including the startup stage and the amount of investment.

Expand your knowledge: Do Angel Investors Get Equity

Finding and Qualifying Investors

To find angel investors in Dallas, you can start by looking at the North Texas Angel Network (NTAN). They support startups by providing capital and knowledge to those who have made strong arguments to invest in their projects.

To work with NTAN, follow these three steps: fill out an application on their site, wait for them to check every candidate, and get an answer from angels whether they are ready to invest in your startup, or not.

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To qualify as an angel investor, you must meet accredited investor requirements based on wealth or measures of financial sophistication set by the US Securities and Exchange Commission (SEC). This includes having a net worth over $1 million, excluding the primary residence, or an income over $200,000 (individually) or $300,000 (combined with a partner) in each of the prior two years.

You can also use online tools like Signal to find the right investors and the strongest introductions to those investors. Signal allows you to segment their database of investors by location, stage, and industry.

Here are some ways to find angel investors in Dallas:

  • Warm outreach: start by looking at friends, family, and work colleagues
  • Warm introductions: rely on introductions from your network
  • Startup providers: see if any startup providers you're working with invest themselves or have relationships with angel investors
  • Online tools: use Signal, Seed Checks, Mercury Raise, AngelList Syndicate Leads, and public LPs on each AngelList Syndicate page

How to Find?

Finding the right investors can be a daunting task, but there are several ways to go about it. Start by looking at your network, including friends, family, and work colleagues, to see if they know any angel investors or can make introductions. You can also check if any startup providers you're working with, such as lawyers, accountants, or consultants, invest themselves or have relationships with angel investors.

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If you're looking for a more targeted approach, you can use tools like Signal, which allows you to segment a database of investors by location, stage, and industry. You can also submit your pitch deck to Seed Checks, which will get you in front of 16 professional investors who write individual angel checks. Alternatively, you can apply to Mercury Raise, which has worked with 630+ startups from 32 countries that have received over $1.7B in funding.

Another option is to connect with AngelList Syndicate Leads, who source and recommend deals to other angel investors. You can also outreach to the 250+ active angel investor groups in the United States, or message relevant angels in angel investor communities to see if they'll invest directly in your company.

It's also worth noting that some angel investor groups, such as the Dallas Angel Network, don't charge fees from applicants, making it a great option to consider.

Who Qualifies as an Investor?

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To qualify as an investor, you'll need to meet certain requirements set by the US Securities and Exchange Commission (SEC).

An individual qualifies as an investor if they meet any of the accredited investor requirements based on wealth or measures of financial sophistication.

To determine if you qualify based on wealth, you'll need a net worth of over $1 million, excluding the primary residence.

This can be achieved individually or combined with a partner.

Alternatively, you can qualify based on income, which requires earning over $200,000 (individually) or $300,000 (combined with a partner) in each of the prior two years.

Here are the specific income requirements in a concise format:

Investment Groups and Companies

In Dallas, you can find several investment groups and companies that support startups. Blossom Street Ventures is a prominent group of angel investors that focuses on startups with $2 million to $30 million of run-rate revenue and year-over-year growth ranging from 20% to 50%+.

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Interlock Partner Investors Group specializes in supporting cybersecurity startups, SaaS companies, and educational enterprises, investing in seed-stage startups with strong growth potential. They also provide mentorship and strategic advice to strengthen leadership teams and drive growth.

Dallas Venture Capital Group is an early-stage fund that invests in innovative technologies, aiming to connect global markets by helping startups improve their business strategies and achieve substantial revenue growth within a short period. Their investments typically range from $500,000 to $5 million.

Venture Capital Group

Interlock Partner Investors Group specializes in supporting cybersecurity startups, SaaS companies, and educational enterprises. They invest in seed-stage startups with strong growth potential.

Interlock Partner Investors Group provides access to a dashboard of 100,000+ investors and allows you to search for angel investors.

Interlock partners are a tight-knit group of angel investors in Dallas that support transformative teams with a focus on growth strategy issues. They help strengthen leadership teams.

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Green Park and Golf Ventures is an investment company that invests in early-stage startups, focusing on promising medical startups. Their initial investments range from $100,000 to $1,000,000.

Perot Jain Angel Investors invest in seed and early-stage startups with a focus on innovative products and market leaders in sectors such as healthcare and B2B services. They provide up to $500,000 in seed funding.

Dallas Venture Capital Group is an early-stage fund that invests in innovative technologies, aiming to connect global markets by helping startups improve their business strategies. Their investments typically range from $500,000 to $5 million.

Perot Jain Angel Investors prefer to work with bold and diligent startups that build apps or platforms in the following sectors: healthcare, B2B areas, and business services.

Blossom Street Ventures

Blossom Street Ventures is a prominent group of angel investors in Dallas, focusing on startups with $2 million to $30 million of run-rate revenue and year-over-year growth ranging from 20% to 50%+.

Credit: youtube.com, Blossom Street Adventures funds all kinds of companies using a different formula

They have a clear investment approach, seeking startups with strong revenue growth potential and a clear path to success. Their portfolio includes software, marketplaces, and e-commerce ventures.

Blossom Street Ventures is known for being non-unicorn hunters, taking a pragmatic and economic approach to investing. They're not looking to invest in startups with unrealistic growth expectations.

Their investment range is significant, typically investing in startups with $2 million to $30 million of run-rate revenue. This indicates that they're looking for established startups with a proven track record of growth.

By focusing on revenue growth, Blossom Street Ventures aims to support startups that can achieve substantial success in a relatively short period.

Mark Cuban Companies

Mark Cuban is a well-known angel investor in Dallas, according to Common Desk. He is one of the "sharks" on the reality TV show Shark Tank, where entrepreneurs pitch their ideas to secure investment.

Mark Cuban's most famous investment was Broadcast.com, a streaming internet radio that was later bought by Yahoo for $5.7 billion. He invests in technology startups run by highly motivated people.

Frequently Asked Questions

How much do you pay an angel investor?

Angel investors typically invest between 10% to 40% of your business in exchange for equity, depending on your growth potential and willingness to share ownership. This investment can be a great opportunity for businesses with high growth potential, but it's essential to understand the terms and implications.

What percentage do angel investors want?

Angel investors typically seek a 10% to 50% equity stake in a company in exchange for funding. This significant ownership share can impact business owners' control and decision-making authority.

Harold Raynor

Writer

Harold Raynor is a seasoned writer with a keen eye for detail and a passion for sharing knowledge with others. With a background in business and finance, he brings a unique perspective to his writing, tackling complex topics with clarity and ease. Harold's writing portfolio spans a range of article categories, including angel investing, angel investors, and the Los Angeles venture capital scene.

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