Texas HALO Fund

Texas HALO Fund, LLC is an investment company and fund series specializing in investments in early-stage businesses with promising growth prospects and exceptional management teams.

Houston, TX, USA

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Description

Texas HALO Fund is a Houston-based venture capital firm and series of investment funds that specialize in early-stage businesses with high growth prospects. Affiliated with the Houston Angel Network, it operates as a structured vehicle for accredited investors to participate in diversified portfolios of early-stage ventures.

Seed & Series A: Primary focus is on the first round of external institutional or angel funding.
Selective Follow-on: Funds I, II, and III are currently making selective follow-on investments in existing portfolio companies, while Fund IV continues to make both first-time and follow-on investments.
Application Method: The fund identifies opportunities from multiple sources across North America. Entrepreneurs can typically engage through the Houston Angel Network or direct inquiries via the Texas HALO Fund website.

Eligibility

Corporate Structure: Startups must be organized as a corporation; the fund does not invest in LLCs or real estate.
Geography: Primarily focused on United States-based companies, though it considers opportunities across North America.
Excluded Sectors: Does not invest in oil and gas drilling or real estate ventures.
Financial Requirements: Startups must raise committed capital from other sophisticated investors and typically have a valuation cap around $8 million for first-time investments.

Process

Vetting: Managing Directors perform rigorous screening and due diligence, leveraging sector-specific expertise to select 20 to 25 companies per fund series.
Ongoing Engagement: Post-funding, Managing Directors often take board positions or observation rights to provide active oversight and guidance.

What an Applicant can Obtain

Diversified Capital: Access to institutional-grade funding from a series of funds managing approximately $25 million in total assets.
Strategic Expertise: Mentorship and operational support from experienced partners and a team of industry specialists.
Co-Investment Network: Increased visibility through the fund's frequent co-investment partners, including Y Combinator, Techstars, and other regional angel networks.