The fellowship was structured as a masterclass in venture capital mechanics under Bryan Chambers, Co-Founder at Capital Factory. The curriculum covered:

VC Fund Structure — The 2/20 model, J-curves, portfolio theory, LP/GP dynamics, and fund lifecycle economics.

Investing Thesis — Capital Factory's Texas Fund thesis: deep-tech, dual-use startups with enterprise software, national security, energy, infrastructure, defense, and healthcare applications.

Deal Structures & Valuation — SAFEs, convertible notes, priced equity rounds, cap tables, dilution modeling, and EBITDA multiples.

Due Diligence Framework — A 7-point framework covering Team Pedigree, Operational Moats, GovTech grants, market sizing, competitive landscape, exit analysis, and founder interviews.

We also attended the Venture Dallas Conference and heard from portfolio founders.

Co-Founder & CEO, Stablecore — Former UTD Professor

Alex Treece is a repeat founder and one of the pioneering voices in crypto infrastructure. He co-founded Zabo, a crypto data aggregation platform often called “the Plaid of crypto,” which was acquired by Coinbase in 2021. At Coinbase, he led product across the Wallet developer platform and launched Quests, one of Wallet’s core monetization platforms.

He now leads Stablecore, a digital asset banking infrastructure company that raised a $20M Series A led by Norwest with participation from Coinbase Ventures.

Co-Founder & CEO, Lumin Fitness — UTD Alum

Omeed Shams is a UTD Jindal School alum (M.S. Innovation & Entrepreneurship) who has been building companies since his student days. He previously founded Kwest, an augmented reality mobile app for interactive guided tours, and was selected for the 2018 Future Founders National Fellowship, a recognition of the top young entrepreneurs in the country.

He now leads Lumin Fitness, billed as “The World’s Smartest Fitness Studio.” Co-founded with Brandon Bean (former CEO of Gold’s Gym), Lumin combines AI, motion tracking, and immersive LED environments to deliver personalized group training at scale.

Thermal imaging and sensors for mechanical health monitoring of farming equipment. Seeking $500K for 10% at a $5M valuation.

Why it was passed: Not a US entity, extremely early stage with no revenue, would require leading the investment, and faced competition from incumbent solutions. Weak problem justification and most expensive option in the market.

Spinal cord stimulation leads using thin-film electrodes on proprietary softening polymers.

Why it was passed: Compelling technology but pre-revenue with an extended FDA clearance timeline. Strong UTD connection but the regulatory risk and long path to commercialization made it too early for the fund.

Expeditionary manufacturing of multimission UAVs using 3D printing and robotic assembly. Backed by a major defense prime. Series A at $275M post-money valuation.

Why it was passed: Impressive defense traction and contracts, but the $275M post-money valuation was too aggressive for the fund's return profile. High dilution risk and heavy dependency on government contracts.

AI-powered sports analytics platform with $22K ARR within 10 weeks of launch. Seeking $750K pre-seed/seed.

Why it was passed: Too early stage, would require leading the round, and the core problem was already solved by an incumbent used by 98% of US high schools. No defensible competitive advantage — nothing stopping the market leader from adding similar AI features.

AI-powered utensils to detect and measure eating habits. Seeking $250K SAFE.

Why it was passed: Still on 4th prototype with no revenue. Untested product-market fit, practical limitations (can't track foods eaten by hand), and limited differentiation against established nutrition and wellness platforms. Only verbal funding commitments.

"Digital Human" software platform for virtual drug testing using biological models. Founded by a researcher with 61,000+ academic citations. Seeking $5M seed with a projected 18-month runway.

Why it was passed: Innovative concept but far too early — no revenue, speculative projections, extended timeline to commercialization, and lacked detailed competitive analysis. The science was strong, but the business case was premature.

Autonomous deployable microfactories using robots to 3D print and assemble aerospace structures. $15–20M seed round at ~$165M pre-money.

Why it was passed: Disruptive WAAM technology with strong aerospace validation, but the valuation was too high, capital requirements were intense, and government sales cycles introduced significant risk. Considered for investment but ultimately passed.

DexMat produces Galvorn, a carbon nanotube-based material that is 10x stronger than steel, half the weight of aluminum, and 100x the flex life of copper. Founded in 2019 out of Rice University by CEO Bryan Guido Hassin (five-time founder) and CTO Dmitri Tsentalovich, PhD.

DexMat had secured significant non-dilutive funding from the DOE, Air Force, and ARPA-E, with partnerships from Shell and Prysmian Group (world leader in wires and cables).

Galvorn's applications span power transmission, defense fabrics, sports composites, automotive, and aerospace — a $2.83T total addressable market with accelerating commercial traction.

Exit valuation analysis using EBITDA multiples from comparable companies projected 8x to 15x returns from the current valuation.

Paradromics is building the highest-fidelity brain-computer interface for advanced medical applications. Their Connexus DDI system features 1,600+ durable platinum-iridium electrodes, a fully wireless infrared data link (100x faster than Neuralink's Bluetooth), and 10+ year electrode durability versus Neuralink's 2-year lifespan.

Founded in 2015 and based in Austin, TX, the company had secured FDA Breakthrough Device Designation with first-in-human trials planned for 2025.

The first market — restoring communication to people who have lost it — represents a significant TAM, with second-order markets in sensory, motor, and mental health applications expanding the opportunity dramatically. The dual-use thesis aligned perfectly with Capital Factory, given Paradromics' acceptance into the DoD's TAP program.

HIGH conviction recommendation with significant MOIC potential by 2035, contingent on successful clinical trials and regulatory clearance.

Both companies received HIGH conviction recommendations. DexMat was selected as the primary investment for several reasons:

Nearer-term commercialization. DexMat had accelerating revenue and active commercial partnerships, while Paradromics was still pre-clinical.

Lower regulatory risk. Galvorn doesn't require FDA approval for most applications, while Paradromics faces years of clinical trials.

Valuation fit. The risk-adjusted return profile was more favorable for the fund.

Immediate thesis alignment. DexMat's dual-use applications mapped directly onto Capital Factory's investing thesis with near-term revenue potential.