Welcome to the Texas Coalition for Capital’s SPECIAL EDITION newsletter. We are a non-profit, statewide coalition of leaders supporting economic development and job creation through long-term access to capital for Texas entrepreneurs and emerging companies.

In each newsletter, we highlight Texas’ emerging investment infrastructure, recent investments, and the spectrum of funding sources available to our small businesses. Texans are pioneers, and the infrastructure we are seeing come to fruition – connecting companies and capital – is no exception.

We are a resource for promising young companies, entrepreneurs, investors, economic developers, and other stakeholders in the deal flow chain. The Texas Coalition for Capital hopes to work with you to keep Texas the most vibrant business climate in the country.

With best regards,

Craig Casselberry, President
Texas Coalition for Capital


Life Science Technology Venture Forum
Rice Alliance Technology and Entrepreneurship Thursday, June 11, 2009

Rice University, McNair Hall, Jones Graduate School of Management

Houston, Texas
Click HERE to learn more.

Key Links

Texas Emerging Technology Fund

Regional Centers of Innovation and Commercialization

Increased research collaboration between public and private sector entities exists through Regional Centers of Innovation and Commercialization (RCIC).  The eight RCICs serve as the initial point of contact for entities seeking capital from the Texas Emerging Technology Fund (TETF). The RCICs act as the regional agent for the ETF Advisory Committee to identify, evaluate, and submit promising proposals from their respective regions to the TETF Advisory Committee.

For more information, visit your local RCIC.

Texas Life Science Regional Center of Innovation
Central Texas Regional CIC
El Paso/Trans-Pecos Regional CIC
Gulf Coast Regional CIC
North Texas Regional CIC
Rio Grande Regional CIC
South Texas Regional CIC
West Texas Regional CIC

Advisory Board

Chairman, Tom Kowalski
Texas Healthcare & Bioscience Institute
President, Craig Casselberry
Quorum Public Affairs
Dan Matheson
Matheson Law Partners
Jeff Clark
Tech America
Larry Peterson
Texas Lyceum
Pike Powers
Fulbright & Jaworski
Damon Rawie
Advantage Capital Partners
Steven Anderson
West Texas Coalition for Innovation Commercialization
James Arie, Ph.D.
University ot Texas Medical Branch-Galveston
Curt Bilby
Terapio LLC
Susan Davenport
Greater Austin Chamber of Commerce/Central Texas RCIC
Guy Diedrich
Texas A&M University
York Duncan
Texas Research Park Foundation
Michael Dwyer
Azaya Therapeutics Inc.
Sloan Foster
Digital Convergence Initiative
Eric Fox
Lockheed Martin
Fernando Gonzalez
Rio Grande Valley Regional CIC
Neal Iscoe, Ph.D.
University of Texas-Office of Technology Commercialization
Martin Lindenberg
Mike Lockerd
North Texas Regional CIC
Andrew Nat
Texas Life Science Regional Center of Innovation
Beto Pallares
El Paso/Trans-Pecos Regional CIC
Jim Poage
Satai Network/South Texas Regional CIC
Brian Hermann
University of Texas Health Science Center San Antonio
Bob Prochnow
Gulf Coast Regional CIC
Terry Schpok
Akin Gump Strauss Hauer & Feld, LLP
Brent Sorrells
TECH Fort Worth
Dennis K. Stone, M.D.
University of Texas Southwestern Medical Center
Mark Ellison
Texas A&M University
Sara Patuel
The University of Texas/TechBA Program
Jacqueline Northcut

Public-Private Collaboration Can Spur Economic Growth
By Kenny Gallagher, President & CEO, Class One Orthodontics

In an increasingly competitive global marketplace and a challenging economic climate, a distinguishing feature of successful state-level economic development programs is the support of state leadership to stimulate economic growth through programs and incentives to attract businesses, researchers, jobs and capital investment to maintain a strong competitive position.

IBM recently reported that states with effective leadership, sound management practices, collaborative working relationships, and valuable assets including universities and a favorable business climate tend to lead in education, job creation, innovation and commercialization.

(Incidentally, our states no longer compete solely with each other; but an advancing global marketplace. Brazil, Russia, India, and China to name a few are placing a heavy emphasis on economic development and doing so successfully through significant public investment and the relatively low cost of labor).

States committed to a sustainable ‘investment infrastructure’ will prosper when times get tough. Not only can states catalyze investment, but put in place an ecosystem that attracts follow on private capital, generally at a multiple of the state’s investment.

Over the last two decades the term “economic development” has been redefined. Historically, economic development focused on attracting large-scale manufacturing projects. While government efforts continue to include traditional business attraction and retention strategies, economic development today often focuses on building a diverse, sustainable economy based on high-growth service and technology-based industries.

Yet according to the U.S. Small Business Administration, 99 percent of all independent enterprises in the United States employ fewer than 500 people, and these enterprises account for more than 50 percent of all U.S. workers. Furthermore, the SBA credits small businesses with the creation of 60 to 80 percent of the net new jobs in the U.S. over the past dozen years.

Unfortunately, small businesses have not traditionally experienced the beneficial impacts of large-scale public incentives, as states have targeted these resources toward retaining and attracting larger companies. Therefore, these smaller businesses have struggled to grow and compete due to the lack of resources and assistance available to them.

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CAPCO Investment Spotlight: Sweet Leaf Tea

NESTL WATERS NORTH AMERICA INVESTS $15.6 MILLION IN SWEET LEAF TEA WITH OPTION TO BUY THE COMPANY: Deal will Transform Austin-Based Beverage Company into a National Brand

April 6, 2009 - Austin, Texas

Sweet Leaf Tea CompanySweet Leaf Tea Company, one of the nations fastest-growing makers of natural, organicbeverages, has fetched a pail of water.

The Austin-based maker of organic, all-natural, home-style iced teas, lemonades andother natural beverages, announced today that Nestl Waters North America, Inc. has made a $15.6 million investment in Sweet Leaf Tea Company.

In addition, the company announced that Dan Costello, a Nestl Waters North America executive will relocate to Austin, to become president of Sweet Leaf Tea, reporting to company founder and chief executive officer, Clayton Christopher. Nestl Waters will also add two directors to Sweet Leaf Teas Board of Directors.

According to Christopher, the partnership will transform the company from a regional brand to one with full national distribution within 24 months. Currently, the companys products are available in about 30% of US markets in natural stores like Whole Foods and grocery chains like Kroger and Safeway. In addition, the partnership will accelerate innovation and fund other growth initiatives.

"We are very enthusiastic about this investment from Nestl Waters and believe we have found in them an ideal partner for growth," said Christopher.

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HBMG: Making You More Competitive for the Future

HBMG, Inc.HBMG, Inc. is a certified Austin-based HUB offering Information Technology and Content Management products and services. The company has provided innovative, cost-effective solutions to government agencies for almost a decade. For the past two years, HBMG has partnered with AT&T in the planning and design of the Network and Security Operation Center (NSOC) for the State of Texas and the Texas Department of Information Resources. The primary goal of the NSOC is to protect the information traversing networks for most state agencies.

HBMG has also worked with the Texas Department of Transportation and transportation agencies in Oregon and Washington State to meet their transportation goals. HBMG is also currently involved in the largest state data consolidation and integration project in the United States for the Texas Department of Health and Human Services.

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Coalition Partner Spotlight: Innovate Texas

About Innovate Texas

Innovate Texas serves as a catalyst for collaboration and transactions among the state’s academic institutions, businesses, investors and government enabling them to engage with the global economy more efficiently and effectively.

Our Story

Texas is blessed with an abundance of natural resources and a collection of some of the most accomplished academic institutions in the world. The state possesses a diverse range of intellectual capital in areas such as energy, environment, biotechnology, information technology, and agricultural sciences. While these institutions continue to drive scientific innovation and advancement, we realized an enormous opportunity to create even greater value for society by better connecting their research to the global economy to foster businesses in Texas that will create new jobs.

We realized that Texas lacked a unified mechanism to connect its technological resources with entrepreneurs and capital. Responding to the challenge of the accelerated timeframes of technological innovation, Innovate Texas Foundation was founded to provide the rapid and coordinated response essential to capturing opportunities that would otherwise head outside of our state and create jobs elsewhere.

To gain maximum value and competitive advantage in an increasingly globalized economy, it is critical that Texas connects its researchers and innovators with the entrepreneurial and financial capital needed to produce world-class companies that create high-value jobs in the state. Innovate Texas Foundation serves as a catalyst for collaboration and transactions among the state’s academic institutions, businesses, investors and government enabling them to engage with the global economy more efficiently and effectively.

By connecting the wealth of knowledge in Texas with the entrepreneurial and financial resources of the globalized economy, Innovate Texas Foundation helps foster a culture in the state that encourages innovation and appreciates the need for strong businesses to create the high-value jobs that will form the backbone of our future economy.

Ultimately, Innovate Texas Foundation believes improving the utilization of our technology will strengthen our public and private universities through licensing, royalty, and other commercial agreements. Also, the new revenue generated by such commercialization will fund still more research, fueling a self-sustaining cycle that will benefit businesses, universities, and taxpayers for generations to come.


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