Hi Mike,

Good evening and forgive the delay in my response. I have been heads-down in some code.

You nailed it that your investments aren’t the presence I was referring to in my comments.

We still have to “click” with Silverton or give up 2% and hope that 2 “mentors” at Capital Factory invest $25k each in order to get to you through your partnership with CF. That 2% doesn’t include the mentors’ Equity either which makes it significant.

While possible, it is not ideal for an entrepreneur to go through that search while just starting out. It is important to add that very few mentors have told me they write one $25k check at CF versus spreading the $25k around, I would be curious to know how many companies made it to an investment from you in that program.

Would you be comfortable sharing how many companies reached your desk for that matching $25k from Floodgate in the last 2 years?

What many people have said to me since this article came out is “How can we get another player in Austin that we can take seriously?” While there are some small funds here, they are not interested in swinging for the fences and as such they seem to value companies very low which is the major intro to this article.

Thanks for your openness Mike. It is refreshing.

Respectfully,

Richard