#Accelerator vs venture capital professional#

After that, rounds of subsequent funding are categorized by letter ('Series-A', 'Series-B', 'Series-C', and so on), with the investment amount (and maturity of the business receiving funding) getting larger as the letters progress down the alphabet. The first (and lowest) funding level for VCs is typically called a 'Seed Round', which is appropriate for smaller companies that have just recently generated traction and need capital to fuel the fire of growth. There are also many different types of VC firms. 1% of businesses are funded by venture capital. Because of these high standards, generally less than. VC firms only invest in companies that have long-term growth potential of at least 10X their investment, and that already have considerable traction (very fast revenue or user growth), a strong team, and a viable product or service. Venture Capital ('VC') firms provide startup or growth equity capital and/or loan capital to promising ventures for returns that are higher than market interest rates, and typically focus on later stage companies. Growth Stage Funding Notable Venture Capital Firms in Houston The resources below are both formal angel investor groups, and also events and networks that informally gather many angel investors.

#Accelerator vs venture capital professional#

In general, investors in groups contribute funds to the group, and a professional syndicate management team chooses the investments. Most angel networks focus their efforts on sectors or verticals in which members have experience or knowledge, although they are usually open to investments in other areas. Notable Angel Investor Groups and Events in HoustonĪngel investor groups are networks, or syndicates, of angel investors who pool their resources together to invest more money than would typically be issued with a private angel investment. Angel investors sometimes go by other names, including “informal investors”, “angel funders”, “private investors”, “seed investors”, and “business angels”. Many angel investors are also professional investors and run more advanced venture funds. They generally provide more favorable terms compared to other types of investors, since they usually invest in the earliest stages of a business, and are more focused on helping startups build a product instead of generating a profit. The goal of a seed-accelerator is to help companies accelerate their product or user growth during the program (typically 3-6 months) in order to raise a proper Angel or Seed Round of funding at the 'Demo Day' that concludes the program.Īngel investors are people that typically invest their personal capital in early-stage startups or entrepreneurs, and generally provide only a small one-time investment to help the business grow. If accepted to a seed-accelerator, a company typically receives a small investment ($15,000-$150,000) in exchange for equity (6-10%). Apply today to build a startup with Houston's top entrepreneurs and investors!Ī 'seed accelerator' is a cohort-based program that typically accepts teams (not solo-founders) with a product (functional prototype or live product) and some form of traction (for example, user, revenue, or team growth). The Founder Institute is currently enrolling in Houston. If you’re looking for investment for your startup in Houston, then check out this massive list of some of the most important funding sources, divided by stage and capital-type. Indeed, one of the best reasons to build a startup in Houston is vast number of local funding sources in the city.

Last year, Houston nearly caught up with Austin in terms of startup funding activity, and accounted for 39.2% of all venture capital investments in Texas, which was primarily raised from local investors. With a pool of top talent, a market with plenty of opportunities, and affordable living and working spaces, it’s easy to see why Houston is a great place to start a tech company.