Capital Factory is an accelerator, co-working space, and venture fund based in Austin, Texas, United States. Founded in 2009 by entrepreneur Joshua Baer, it is one of the most active early-stage investors in Texas and is particularly noted for its focus on defense technology and its partnerships with the US Department of Defense.
Capital Factory was founded in 2009 by Joshua Baer, a serial entrepreneur who had previously co-founded Skylist, an email marketing company acquired by Constant Contact in 2005. The accelerator was established to support the growing technology startup community in Austin, Texas, and offered seed funding, mentorship, and office space to early-stage companies.
Over the following decade, Capital Factory expanded significantly. It grew from a small cohort-based program to a year-round accelerator operating across multiple Texas cities, including Dallas, Houston, and San Antonio, in addition to its Austin headquarters.
In 2017, Capital Factory launched a dedicated defense technology practice, positioning itself as a bridge between the commercial technology sector and the US military. It has established partnerships with military branches including the US Army, US Air Force, and US Space Force, as well as with the Defense Innovation Unit (DIU).
Capital Factory operates a range of programs for early-stage technology companies:
Companies that have participated in Capital Factory's accelerator include: