Kevin Vela: Why Dallas is primed for “Series A” funding
Kevin Vela is a managing partner at Vela | Wood PC, a Dallas-based law firm that focuses on startups and small businesses. He recently published an article explaining what “Series A” funding is and why Dallas is the prime location for this funding.
For those of us who have no clue what “Series A” funding is, don’t worry, Vela had difficulty defining the term as well. He said that this funding is a broad term, and explained it this way:
“Every new startup is aiming for a Series A round, and every investor wants to invest in a Series A round, but no one can really define what ‘Series A’ means.”
An article describing Angel, Series A, and Series B funding by David Rose defined the term of “Series A” funding as typically the first outside funding to be invested in exchange for ownership in the company. The amount of “Series A” funding is typically in the range of millions of dollars.
So why is Dallas a prime location for Series A funding? Vela believes it’s because:
The companies are ready. In case you don’t read the newspaper or online blogs, Dallas is quite the hub of successful startup companies. Vela’s own company has been investing in several rounds of “Series A” funding each month. Several startup companies such as Vinli are taking off quickly.
The investors are ready. New investors are seeing the success of startups and are jumping on the bandwagon. Some of these companies include Aristos Ventures, OE Capital, and Deep Space Ventures that launched this year alone. Old money investors who may have previously investmented in real estate or telecom, are now broadening their portfolio to include technology startups.
We have the ecosystem in place to support it. Here in Dallas, you have the talent, the resources, and the support for Series A funding. There’s an entire ecosystem that is thriving because of the talented people coming to work for startups, media covering the industry, educational opportunities, and even companies – such as Vela’s – with the sole focus of working with startups and small businesses, to name a few.