Rebel One is an investor network and fund focused on backing rebel founders. Rebel founders are located everywhere, not just the coasts of the U.S. where a bulk of the capital in venture is allocated. We are sharing ecosystem research for our investor network to help them find the best rebel founders. This is a high level analysis of the Austin startup ecosystem for those investors.

1. Rebel One Ventures
Startup Ecosystem Analysis
Austin, TX
By
Sergio Marrero (GP), Vrat Joshi (Analyst)
1
RBL1.COM

2. A Bird’s Eye View
City Snapshot
2
Population | 980K (2.3M Metro)
Unemployment | 12.2% (2020)
(~3.5% historically | 2019)
GDP | $146.8B
Education System
27 Colleges, 180K+ Students
Top Programs:
Red McCombs Business | UT
University of Texas at Austin
St. Edwards University
Acton School of Business
Huston-Tillotson University
Austin, TX
Sources: Austin Chamber of Commerce (Economic Development) (Education Overview), US Bureau of Labor Statistics
RBL1.COM

3. Looking into the Investment Space
Funding Options
3
Angels / Angel Groups:
David Cohen, Joshua Baer,
Arun Prakash, Asad Zafar,
Jared Solsberg, Andrew
Busey, Cameron
Drummund, Rob Taylor,
Mellie Price, Michael Dell,
Robert Smith, Central Texas
Angel Network, Southwest
Angel Network
Venture Capital:
Blue Sage Capital, LiveOak
Venture Partners, Silverton
Partners, Elsewhere Partners,
S3 Ventures, Quake Capital,
Moonshots Capital, Vista
Equity Partners (PE), Sante
Ventures, Next Coast
Ventures, Ecliptic Capital,
Notley Ventures
Accelerators /
Incubators:
Accelerate at Capital
Factory, Techstars,
Sputnik ATX, SKU,
International Accelerator,
Bunker Labs, Texas
Venture Labs, Give Inc.,
Venture Fellows, DivInc.
Austin, TX
Sources: Founder Institute
RBL1.COM

4. Ecosystem Observations:
» Austin is a HQ for the US Army Futures Command and center for accelerating defense
innovation investments in startup technologies
» Increased movement of Tech growth (Amazon, Apple, Tesla, Facebook, and Google)
» Deal numbers less than Chicago, but overall investments were more
» One of the fastest growing metropolitan areas (by economy and population)
The Macroeconomics of the VC System
Venture Capital Ecosystem
4
Funding Statistics
VC Investment: $2.2B, 263 deals (top10)
U.S. Deal Share: ~1.61%
VC Investment per Capita: $2,244
Top Investment Sectors:
Software (Cybersecurity, AI), FireTech
(Finance, Insurance, Real Estate),
Cleantech, Defense, Consumer Products,
Enterprise SaaS
Sources: AmericanInno (Pitchbook-NVCA Venture Monitor), Bloomberg CityLab, Austin Chamber of Commerce
Austin, TX
RBL1.COM

5. Founder Resources to Gain Knowledge
Other Resources
5
Meetups:
SXSW Conference, Austin Diversity in Tech,
Austin Hardware Startup, Female Founders
ATX, Hackernest, ReThink, AUTM
Co-Working Spaces:
Capital Factory, Impact Hub Austin, Createscape,
Incubator CTX, Fibercove, Industrious, Vessel
Coworking, WeWork, Common Desk
Startup Media Channels:
Built in Austin, Austin Startups, AustinInno,
SEO’Brian, Startup Digest Austin
Austin, TX
Sources: Founder Institute
RBL1.COM

6. Who Dominates the Austin Economy?
Current Leaders & Rising Players
6
Largest Companies (Market Cap)*:
Activision Blizzard, Amazon, AMD, Apple,
Charles Schwab, Dell, Facebook, Indeed,
National Instruments, Silicon Labs, Vrbo,
Whole Foods, Yeti
*Major corporate HQ or regional offices
Notable High-Tech Ventures Started:
Dell (Computer Hardware/Software), Indeed (Media &
Information Services), RetailMeNot (Business Discounts),
Silicon Labs (Semiconductor), HomeAway (Rental
Services), Bumble (Social Media), Anaconda (Database
Software), Favor (Food & Personal Delivery),
WP Engine (Internet Software)
Sources: Austin Chamber of Commerce (HQ’s), Pitchbook
Austin, TX
RBL1.COM

7. Top Ranked Startups:
» Athena Security | Security Equipment / Software
» ICON Build | Construction & Technology
» Diligent Robotics | Healthcare Tech (AI)
» RigUp | Workforce Management & Hiring
» Hitch | Ride Sharing
» Firefly Aerospace | Aerospace & Defense
» OJO Labs | Virtual Real Estate
» The Zebra | Automotive Insurance
» Dropoff | Logistics
SaaS and Consumer Products Lead the Way
Economic Activity
7
Recent M&A & IPO’s:
» Movoto, OJO Labs | Undisclosed
» Whole Foods, Amazon | $13.7B
» Rivet Networks, Intel | Undisclosed
» Opcity, Move | $210M
» HomeAway, Expedia | $3.9B
» Favor, H-E-B | Undisclosed
» Main Street Hub, Go Daddy | $126M
» XOXCO, Microsoft | Undisclosed
» RetailMeNot, Harland Clarke | $630M
» CFA Trading, Global Resale | Undisclosed
» Brigham Minerals IPO | $317M (MC)
(Acquired, Acquiree | Deal Value ) , Homeaway rebranded to VRBO
Austin, TX
Sources: Austin Business Journal, Pitchbook, Crunchbase, Mercer Capital

8. Analyzing the Geographic and Economic Reach
Area Insight
8
Insights:
» Major venture players are highly
concentrated around “Lady Bird Lake” and
primarily around downtown Austin, near the
University of Texas at Austin
» Fastest growing Metropolitan area (economy,
population)
» Average investments around $11.55M, up
22% over 2018*
» Late Stage, Early Stage increasing as
opposed to Seed (Series-C most popular)
» Largest funding round by a Texas Company
(RigUp - Series D ($300M)) - 2019
» Among the most active VCs - Silverton
Partners and Ecliptic Capital
Venture Capital Accelerator / Incubator Co-Working
Austin, TX
RBL1.COM
Source: Brian Williams, Wayne and Reed, http://wayneandreed.com/; *Austin Chamber of Commerce

9. Insight from Local Subject Matter Experts
Analysis
9
Feedback from locals immersed in the ecosystem:
a) There is a live, active entrepreneurial environment focused on impact in Austin,
largely driven by the city’s culture and The University of Texas.
b) Because Austin is removed from SF and NY, it can be challenging to bring large
corporate executives down to the South outside of SXSW, with no other major
other startup ecosystem in close proximity. However, more recently, there has been
an influx of investors and talent from California coming due to the lower cost of
living, weather, and creative community that Austin supports i.e. “Keep Austin
Weird.”
c) Many groups of investors and founders are fragmented into smaller communities
and there is an opportunity for them to work more closely together to elevate the
entire Austin ecosystem.
d) Due to the young market, there is a limited history of startups becoming public
companies, like Dell, with a greater emphasis on being acquired.
Austin, TX
RBL1.COM

10. Sources
Interviews: Brian Williams
https://fi.co/insight/the-guide-to-the-austin-startup-ecosystem-250-resources-for-entrepreneurs
https://www.americaninno.com/austin/funding/vc-funding-report-austin-startups-raised-2b-plus-in-2019/?mc_cid=0224df92ba&mc_eid=7507555c4c
https://www.austinchamber.com/economic-development
https://www.bls.gov/eag/eag.tx_austin_msa.htm
https://www.crunchbase.com/hub/austin-startups#section-acquisitions
https://mercercapital.com/energyvaluationinsights/brigham-minerals-ipo-brings-spotlight-to-oil-gas-market/
https://www.flaticon.com/
https://news.crunchbase.com/news/austin-reaches-top-10-in-us-venture-markets-with-record-funding-in-2019/
https://www.citylab.com/life/2018/03/the-extreme-geographic-inequality-of-high-tech-venture-capital/552026/
State of the Market
Analysis
10
The venture capital ecosystem in Austin is growing rapidly and increasing in presence on
the global stage, catalyzed by the annual conference SXSW. With many historic success
stories and with new companies like ICON Build making a remarkable name for itself,
the city of Austin creates change and makes impact (cleantech) by heavily focusing on
cybersecurity, firetech, enterprise SaaS, and consumer products. The city has more
recently caught the eyes of venture capital investors, with a higher investment per capita
versus other cities driven by the creative economy of Austin. As Austin moves forward, it
is important for the city to maintain the advantage in lower cost of living and
objectiveness in valuation to maintain its competitive position as the ecosystem
matures.
Austin, TX
RBL1.COM