Texas Tech Boom: Joshua Baer of Capital Factory on Startup Ecosystems
Release Date: 01/15/2025
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info_outlineHow do you turn Texas into a global innovation hub? For Joshua Baer, founder and CEO of Capital Factory, the answer lies in empowering unstoppable founders, fostering a vibrant entrepreneurial community, and leveraging Texas’s unique advantages.
Here’s a glimpse of what you’ll learn:
- 00:43 Introduction to the Driving Alpha Podcast
- 00:54 Meet Josh Baer: Texas Startup Powerhouse
- 01:37 The Impact of Capital Factory
- 03:44 Josh Baer's Entrepreneurial Journey
- 07:07 Early Ventures and Lessons Learned
- 11:06 The Birth of Capital Factory
- 13:58 Investment Strategies and Focus
- 17:22 The Future of Robotics and AI
- 18:02 AI's Impact on Humanoid Robotics
- 18:22 The Inflection Point of GPS in Smartphones
- 19:31 Capital Factory's Open-Door Policy
- 20:21 Texas: A Hub for Startups and VCs
- 21:12 The Path to Becoming a VC in Texas
- 26:46 Government and Dual-Use Technology
- 31:15 The Booming Tech Scene in Texas
- 34:34 Conclusion: Reflections and Future Prospects
In this episode...
On this episode of Driving Alpha, host Steve Brotman explores Joshua’s journey from launching a startup in his dorm room at Carnegie Mellon to building Capital Factory into the most active early-stage investor in Texas. With nearly 1,000 investments, the firm isn’t just funding startups—it’s creating an ecosystem.
Capital Factory focuses on “dual-use” startups that serve both commercial and government markets, with Texas positioned as a leader in AI, robotics, and national security. Companies like Aptronic, a pioneer in humanoid robotics, showcase Texas’s growing role in transformative industries.
“Texas is our nexus,” says Joshua. “It’s where we have a unique advantage—a center of gravity for innovation.”
By combining talent-driven investing with a collaborative model that partners with VCs, Capital Factory is redefining what’s possible in venture capital.