Texas Fund (Capital Factory Ventures)

Texas Fund II is a $50M venture capital fund managed by Capital Factory Ventures Management, LLC, investing in Pre-Seed through Series B deep tech startups across defense, healthcare, and next-gen industrial sectors, with a strong emphasis on Texas-based companies. Building on the success of Texas Fund I, the fund leverages Capital Factory's unique position as the largest concentration of DoD funding agencies outside the Pentagon, proprietary investment rights in 750+ active portfolio companies, and deep government and enterprise relationships to source and support high-growth startups.

Despite Texas being the 8th largest economy in the world and a rapidly growing hub for deep tech, defense, and enterprise innovation, founders in the region have historically received less than 2% of national VC investment and lack a dedicated, well-connected institutional fund to support them from early stage through growth.

Texas Fund II deploys capital into up to 50 Pre-Seed to Series B companies per year, backed by Capital Factory's $250M proprietary deal engine, on-site DoD contracting relationships, DARPA technology partnerships, congressional lobbying presence, and $315M AUM platform with 750 active portfolio companies — providing both capital and unfair access to government contracts and enterprise customers.

Texas Fund I achieved 2.2X MOIC and 32% IRR across 135 companies; SPV program has deployed $166.7M across 14 deals since 2021 with a 3.5X net unrealized value and 120% net IRR. Capital Factory manages $315M in AUM as of Q1 2026, has secured $2B+ in contracting dollars for portfolio companies, and adds 100 new portfolio companies and $50M in investment rights annually.