Factory
About Factory
Capital Factory is an early-stage venture capital firm, startup accelerator, and coworking community based in Austin, Texas. Founded in 2009, it has become a key player in the Texas entrepreneurial ecosystem, supporting over 750 companies, including several unicorns. The firm manages approximately $50 million in assets and focuses on investing in technology sectors such as Enterprise Software, SaaS, and Artificial Intelligence.
The company offers a range of services to assist startups, including capital investment, mentorship, and access to a collaborative coworking space. Their accelerator p
Capital Factory was founded in 2009 in Austin. Its own site credits Joshua Baer with starting it as a mentorship-driven software accelerator that took five companies a year. Austin.io lists Sam Decker, Joshua Baer and Bryan Menell as co-founders. The firm says PitchBook ranks it as the most active early-stage investor in Texas every year since 2010. It moved from accelerator to venture firm in 2021, when its Texas Fund wrote its first cash checks. A Fellowship Fund launched in 2023. Baer was CEO and died in a plane crash near Laredo, Texas, on June 16, 2026, according to press reports. The sources I found do not name a successor or any partners who lead AI investing. Fund sizes are not public in those sources.
Capital Factory does not publish a separate AI strategy. It describes itself as backing founders working on "the hardest problems" early, and its AI exposure runs through software, health tech and frontier hardware. Seedtable classifies 18 of the deals it tracks as Artificial Intelligence. In 2022 the firm made its first investment in Apptronik, a humanoid-robotics company, which it presents as a shift toward deep and frontier technology. Its site also names Saronic, which builds autonomous ships. Its Austin base also houses a Center for Dual-Use Innovation, where Army Futures Command, AFWERX and DIU have been tenants.
Tracxn says the firm mainly invests at seed in US-based startups. Capboard lists Seed and Series A, with checks of $25K to $250K. Capboard is a third-party directory, so treat that range as indicative and not as a published policy. The firm does not state check sizes or reserve policy on its site. Its Texas Fund is described as making cash investments in Texas deep-tech and software startups.
- Markup AI: raised a Series A in September 2025, listed by Crunchbase as Capital Factory's most recent investment on that profile.
- Autonomize AI: health technology company, Series A entry per Seedtable.
- Apptronik: humanoid robots, first Capital Factory investment in 2022.
- Saronic: autonomous ships, named on the firm's site as a portfolio company.
- capitalfactory.com/about
- capitalfactory.com/company-overview
- austinio.com/austin-startup-capital-factory.html
- insurancejournal.com/news/southcentral/2026/06/18/874208.htm
- crunchbase.com/organization/capital-factory/financial_details
- seedtable.com/investors/capital-factory
- tracxn.com/d/venture-capital/capital-factory/__zb-F2f8DaptHzU5zqFv0kJU
- capboard.io/en/investor/capital-factory
Investing activity
Factory appears in 4 AI deals tracked by the Lounge deals desk, rounds totalling $214M. The rounds are mostly Seed, with a median round size of $50M and the largest at $98M. The most recent are Noetive (Seed, $41M, Sep 2026), Transfyr (Seed, $25M, Aug 2026) and Engram (Seed, $98M, Jun 2026).
Factory most often invests alongside General Catalyst, SV Angel, Neo and Eclipse, and the companies it backs on Lounge are mostly in AI.
Deals
Frequently asked questions about Factory
Does Capital Factory invest in AI startups?
Yes. AI is one of its listed focus areas, and its portfolio includes Markup AI and Autonomize AI. It also backs robotics and autonomy companies such as Apptronik and Saronic.
What check size does Capital Factory write?
The firm does not publish check sizes. Capboard, a third-party directory, lists $25K to $250K at Seed and Series A.
Does Capital Factory only invest in Texas startups?
Its Texas Fund targets Texas deep-tech and software startups. Tracxn describes its investing as mainly in US-based companies.
Who founded Capital Factory?
Joshua Baer is credited as founder. Austin.io lists Sam Decker, Joshua Baer and Bryan Menell as co-founders. It was founded in Austin in 2009.
Who leads AI investing at Capital Factory?
No source I found names a partner who leads AI investing. Check the firm's team page and LinkedIn before you pitch.
What AI companies has Factory invested in?
Factory's AI investments include Noetive, Transfyr, Engram and Radical Numerics. The 4 rounds on Lounge are listed on this page with amounts, dates and co-investors.
Where is Factory based?
Factory is based in Austin, Texas, United States.
What stage does Factory invest at?
In the rounds tracked on Lounge, Factory has invested at Seed, with a median round of $50M.
Who does Factory co-invest with?
Factory's most frequent co-investors on Lounge are General Catalyst (2 deals), SV Angel (2 deals), Neo (2 deals), Eclipse (1 deal) and The Westly Group (1 deal).
How can founders reach Factory?
Founders on Lounge can see Factory's contact details in AI Investor Contacts (paid plans), check for a warm introduction through members who worked with the firm under Warm Paths, and add Factory to their Investor Pipeline to track the conversation.