Welcome to the Texas Coalition for Capital's special edition e-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' dynamic investment infrastructure, recent investments, and the spectrum of funding sources available to our small businesses. Texans are innovators, 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, universities, 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
Texas Rural Challenge 2010
Set for May 24 & 25
"Building the Competitiveness of Texas Rural Communities"
The Texas Rural Challenge Conference is a state-wide rural focused event that will provide rural leaders with tools for funding in these critical times, creating jobs and improving quality of life in rural communities.
The goal of this conference is to spur business and economic growth in rural communities across Texas by providing leaders with practical and proven approaches to rural development.
Experts will be paired with successful everyday practitioners. Attendees will benefit from the input of other rural leaders that have successfully used the tools presented to overcome rural challenges.
Invited Keynote Speakers: Al Salgado, Southwest Border Network; Liz Sumter, Hays County Judge; Donna Gambrell, Director, U.S. Treasury; Todd Staples, Texas Agriculture Commissioner; Denise Trauth, President, Texas State University; Judy Canales, United States Department of Agriculture-Rural Development; Brian Dabson, Rural Policy Research Institute
Panel Sessions: Community Planning Tools, Community Research Tools, Infrastructure Planning & Development, Capacity Building, Creating New Markets for Small Businesses, Community Entrepreneurial Readiness, Regional Approach to Rural Economic Development, Success Stories for Community Projects and Entrepreneurs
For more information or to register click here.
Welcome New Coalition Members!
Rebecca Arterbury / Eric Fox - Lockheed Martin
Jason Black - Boundless Network
Michael Dwyer - Azaya Therapeutics
Carrie Fox - Principal Financial Group
Matheson Law Partners
Jim Poage - SATAI Network
Advisory BoardChairman, Tom Kowalski
Texas Healthcare & Bioscience InstitutePresident, Craig Casselberry
Quorum Public AffairsDan Matheson
Matheson Law PartnersJeff Clark
Tech AmericaLarry Peterson
Texas LyceumPike Powers
Fulbright & JaworskiDamon Rawie
Advantage Capital PartnersSteven Anderson
West Texas Coalition for Innovation CommercializationJames Arie, Ph.D.
University ot Texas Medical Branch-GalvestonCurt Bilby
Terapio LLC Susan Davenport
Greater Austin Chamber of Commerce/Central Texas RCICGuy Diedrich
Texas A&M UniversityYork Duncan
Texas Research Park FoundationMichael Dwyer
Azaya Therapeutics Inc.Sloan Foster
Digital Convergence InitiativeEric Fox
Lockheed MartinFernando Gonzalez
Rio Grande Valley Regional CICNeal Iscoe, Ph.D.
University of Texas-Office of Technology CommercializationMartin Lindenberg
AlphaDEV LLPMike Lockerd
North Texas Regional CICAndrew Nat
Texas Life Science Regional Center of InnovationBeto Pallares
El Paso/Trans-Pecos Regional CICJim Poage
Satai Network/South Texas Regional CICBrian Hermann
University of Texas Health Science Center San AntonioBob Prochnow
Gulf Coast Regional CIC Terry Schpok
Akin Gump Strauss Hauer & Feld, LLPBrent 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
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Two Companies Benefit from Public-Private Investment
Texas CAPCO Program Fuels Company Growth
Schools getting 'WhiteGlove' health care service
BY TAMARIND PHINISEE, San Antonio Business Journal
School districts around the city are opting for an alternative health care service that is quickly gaining popularity.
service, provided through Austin-based routine medical provider
WhiteGlove House Call Health, essentially brings the doctor's office to
the school district employees.
are visited on-site by a nurse practitioner who takes vital signs and
performs a complete check up on the ailing patient.
nurse practitioner also brings generic prescription medications, foods,
beverages, and over-the-counter medications, which are furnished to the
Employees simply pay a $35 co-pay and everything provided during the visit, including prescription meds, is included.
annual membership fee of between $300 and $400 per employee is covered
by the school district's insurer, when the service is first used by the
The three insurers partnering with WhiteGlove to provide this service are: Humana, Aetna and United Healthcare.
This service is available to employees 365 days a year between 8 a.m. and 8 p.m. - at work or at home.
idea is that employees miss less school, districts pay less money for
substitute teachers and shave costs off of health insurance.
BY JANICE WOOD, GA News
Uvalde-based Sierra Industries creates new division
Sierra Industries has created a new division, SkyWay Aerospace
Technologies, after signing a multi-year contract with a major aircraft
original equipment manufacturer (OEM) for a joint aerospace technology
While non-disclosure agreements prevent specific company
identification, Sierra officials said, the program will involve the
development and manufacture of multiple new product offerings in
aviation. Program Manager Bobby Smith will oversee the new company.
Smith is a retired Air Force Colonel and fighter pilot with an Airline
Transport Pilot, civilian flight instructor, instrument, and
multi-engine instructor ratings. He has over 6,000 flight hours,
including Cessna Citation 500 series business jets and test pilot
SkyWay Group President and Sierra CEO Mark Huffstutler
remarked, "Despite the challenging business environment in today's
business aviation industry, Sierra continues to seek new opportunities
for growing our customer base and our workforce. The creation of this
new division and winning of long-term technology development contracts
are integral to that goal."
Sierra Industries has specialized in Citation aircraft for
over 25 years and is a leader in Citation Performance Enhancement
Modifications, currently holding more than 75 proprietary Citation
modifications and products - which covers only a part of the company's
more than 300 FAA supplemental type certificates (STC).
In a Cash Crunch? Work With Your Vendors
Paying your bills late and stretching your payables could yield increased cash flow.
BY GEORGE CLOUTIER, entrepreneur.com
business to make real money for you, your family and your employees. At
least I hope you are. If your goal isn't to pile up personal wealth,
you will probably fail. If you care about doing something good, give a
portion of your profits to charity--just be sure to make profits first.
Over the last
two years, most small-business owners have exhausted both their
personal net worth and that of their businesses. They've borrowed where
they can on household equity, emptied their 401(k)s and family savings
accounts, have drastically reduced their compensation, and some are
even facing foreclosure. Bank lending and other commercial financing
sources have shriveled. In fact, for most small businesses, every day
is hand-to-hand combat for cash flow. Sometimes if your situation is
dire, you may have to sacrifice profits for cash.
One of the
last sources of cash for your business is your vendors. One major
distributor recently announced it paid down $1.9 billion in debt by
drastically extending its payment terms with vendors. The corporation
went from net-30 to net-60 days--in some cases, net-never--after sale.
Why can't you do the same on a smaller scale? Whenever you negotiate
additional time to pay, you have created an interest-free permanent
loan for yourself.
have $5,000, $50,000 or $100,000 in payables, extending those payables
30 days is free cash. Would you rather ease your cash flow problems or
be warm and fuzzy with your vendors? It's your choice.
terms are 30 days, see if you can get 60, and in another three months
try for 90. Negotiate honestly with your vendors; be upfront about why
you need extra terms and that you need their help. About 90 percent
will respond favorably. If you absolutely need a vendor, let him
win. In most cases, you can find other sources that will go the extra
mile for you; they are your real friends.
Some Banks Cater to Niche Areas, Such as Veterinarians, Life Sciences, but Too Much Concentration Can Carry Risks Entrepreneurs Find Success With Specialty Lenders
BY EMILY MALTBY, The Wall Street Journal
owners who approach specialty lenders have an advantage. The loan
officer already knows the revenue potential, financing and cash-flow
needs of that industry, particularly in the context of the broader
economy, and can advise with keen awareness of any snags in the
Motion Computing Inc., an Austin, Texas, manufacturer of tablet
computers, needed a revolving line of credit, the managers heeded the
advice of their investors and approached Silicon Valley Bank, based in
Santa Clara, Calif. The bank specializes in catering to high-growth
technology and life sciences firms. "They totally understood our market
so we could have good strategic conversations about the growth plan,"
says Cathy Thompson, Motion Computing's chief operating officer. The
company secured a line of credit. Ms. Thompson declined to say the
officers at specialty banks often have a sharp eye for mismanagement
and are judicious about loans they issue. That selectivity is a
necessity, as regulators often scrutinize banks that carry too much
weight in one or two industries.
lenders are considered risky, especially in light of the financial
fallout that resulted from a too-high concentration of loans in the
real-estate market, says Mark Schmidt, a 33-year veteran with the
Federal Deposit Insurance Corporation's Atlanta office who now advises
financial-services companies at consulting firm Promontory Financial
Schmidt adds that existing banks are "not prohibited from identifying
and moving in to a niche model," but they may be subject to more
scrutiny from regulators if the niche appears risky.
To read more click here.
Syndiant Receives $3.5 Million Investment from Texas Emerging Technology Fund; Recruiting to Fill New Jobs
enabling consumers to enjoy a large screen experience in handheld
electronics, received a Technology Commercialization Award of $3.5
million from the Texas Emerging Technology Fund (TETF). The funding
will be used to advance the production of Syndiant's VueG8 ("ViewGate")
display products for embedded pico projectors, as well as add
engineering staff to its Texas-based headquarters.
are pleased to be chosen as a recipient of the Emerging Technology Fund
and believe this is strong endorsement of our technology, which offers
consumers significant advancement in display technology for embedded
pico projectors," said Mark Harward, CEO of Syndiant. "The funding will
expedite the commercialization of our technology, accelerate the market
acceptance of next-generation, embedded pico projectors and enable us
to create job opportunities at Syndiant."
first funding tranche (out of two) will enable Syndiant to hire six
additional engineers, expand its U.S. and International patent filing
activity, and engage with the Center for Integrated Circuits and the
Materials Science Department at the University of Texas at Dallas.
Texas Regional Center for Innovation and Commercialization (NTXRCIC)
Director, Mike Lockerd, who is responsible for assisting companies with
the Emerging Technology Fund application process stated, "The selection
committee gives priority to companies with technology that will disrupt
the marketplace. We believe Syndiant has the ability to do this and, by
providing resources and capital to help bring their technology to
market, we are helping Texas maintain a strong position in our highly
competitive global economy."
How to Win Angel Funding
BY COLEEN DEBAISE, The Wall Street Journal
you're looking for a cash infusion for your high-growth company, angel
financing might be for you. (See related story, "What's an Angel
I asked Susan Preston, author of Angel Financing for Entrepreneurs
and an angel herself, to explain what an angel wants to see before
making an investment. Here's her list:
· A solid potential for return. Angels want to know how your company
will make money, when it will turn profitable, and when they can expect
a return on their investment. You'll need to back up those promises of
profitability with financial documents that include an income statement
(also referred to as a profit/loss statement), a balance sheet and cash
· A good plan for the cash. Investors want to make sure their money
will be spent wisely. If you've founded, say, a consumer product
company, you'll need to show how the money will be used to design,
develop and distribute your product. And emphasize your thriftiness:
angels don't want to see the money being used for big salaries or fancy
· A winning attitude. Get fired up. Angels want to see passion; they
want to see you're committed to your concept and company and that
you'll stay the course when obstacles arise. Aside from enthusiasm, you
must be able to clearly articulate your company's mission-and how
you'll make that dream a reality.
· A seasoned team. Angels want to see a strong management team
that's capable, experienced in their industry and, more important, open
to suggestions and opinions. "If I don't think that a CEO or founder is
coachable, I won't invest," Preston says. "Someone who comes in and
says 'I know all the answers' is the kind of person who is doomed to
· A competitive edge. How are customers responding to your product
or service? An angel will want to know that you can capture market
share quickly and beat out competitors as you ramp up. If your product
or service is fairly unique, an angel will want to see you've secured
the patents, copyrights or trademarks to protect your intellectual
· A well-defined exit strategy. Investors will want to know exactly
how you plan to make them money-and just saying "IPO" or "acquisition"
might not be enough. Research how other companies in your industry have
returned profits to investors. Identify potential suitors for your
business. "It's a homework point that they need to have done," Preston