The Central Texas Angel Network, a group of local individual investors, announced today that its members provided $1.2 million in funding to early-stage companies in 2007. Nine Texas-based companies received funding from the group last year to help grow and expand their businesses.

A diverse range of companies received financing through the Central Texas Angel Network in 2007, including three in the category of internet/web services, two software companies, and one each in the areas of wireless, digital media, healthcare, financial services and oil & gas.

“The number and variety of deals speaks to the strong entrepreneurial and investment climate in the Austin area,” said Jamie Rhodes, chairman of the Central Texas Angel Network and CEO of Perceptive Sciences. “In 2007, the group reviewed 120 business plans from applicants. Of the companies that were invited to present to the membership, more than 50 percent received funding.”

For deals to be considered by the Central Texas Angel Network, they must be based in Texas, have a completed product/service offering, and be seeking no more than $2 million in funding. Applications are screened by members, with four companies chosen four times a year to present to membership. Presentations will increase to six times a year in 2008.

Some of the companies receiving funding in 2007 included:

• Armida Technologies, San Antonio. The company designs and develops hardware and software products for ultra-reliable wireless video surveillance and security in commercial and industrial applications.
• DisplayPoints, Inc, Austin. A new digital media company that brings relevant content directly to target audiences via interactive table tent displays in restaurants and bars.
• Frontier Bank of Texas, Elgin. An independent, community bank located in Bastrop County, with local stock ownership.
• OneSpot, Austin. A smart Web content aggregator that helps brands drive traffic and revenue by automatically finding fresh and focused digital content for their websites, email newsletters, and blogs.
• Minggl, Austin. A browser toolbar that brings your social sites such as Facebook and MySpace together in one place, feeding you the latest activities of friends, no matter where you are on the web.
• Perception Software, Austin. Provides engineering productivity applications for electronic systems and semiconductor design companies worldwide.
• Senscient, Inc., League City. Develops, manufactures and markets advanced gas detection products for industrial safety, based on “Enhanced Laser Diode Spectroscopy™.

Several other recent presenting companies have received interest from Central Texas Angel Network members. Follow on meetings by individual investors and due diligence research is currently underway.

Angel Network groups are made up of individuals who meet regularly to review and consider investments in entrepreneurial businesses, typically with members making individual investment decisions. According to the Angel Capital Association (ACA), there are currently about 265 angel groups operating in the United States and Canada, an increase of 67 percent since 1999.

“This is an excellent time to be involved in an Angel Network,” Rhodes said. “We’ve seen both membership and deal flow almost doubling over the past year.”

The Central Texas Angel Network, which was formed in mid-2006, currently has more than 50 members. “We have members with a variety of industry backgrounds that get involved not only for the investment opportunities, but also to provide entrepreneurs with significant experience-based advice and mentoring,” said Rhodes. “Angel investors are a critical component to the establishment and growth of early-stage companies in our community.”

Along with providing access to funding, the Central Texas Angel Network hosts a variety of training forums. The group held four Entrepreneur Education sessions in 2007, as well as joint funding events with the Acton School of Business, TEI Austin and the Austin Technology Incubator. Five education sessions for Angel members were also held in 2007, focusing on topics including valuation, due diligence, angel/entrepreneur interaction, and planning for successful M&A exits.

About the Central Texas Angel Network
The Central Texas Angel Network (CTAN) is a member-led group of individuals who provide counsel and funding to early-stage, Texas-based companies. Members are accredited investors with diverse business backgrounds that have an interest in accelerating the growth of promising start-up businesses. The group meets regularly to review investment opportunities -- members collaborate on due diligence, but make individual investment decisions. The Austin Chamber of Commerce is a founding partner of CTAN. More information is available at www.centexangels.org.