Investors in the Texas Christian University community have new financial opportunities through the Horned Frog Investment Network.
Founded in March 2022, the Horned Frog Investment Network brings together various stakeholders, including investors, startup leaders and Neeley School of Business MBA students, with the goal of funding select startups. While most members of the network have a direct affiliation to TCU, either as alumni or parents, others live in the Fort Worth community.
Rodney D’Souza, managing director of the Institute for Entrepreneurship and Innovation, leads the investment network alongside program managers Andrew Hicks ’13 (MBA ’21) and Joe Dickerson ’11 (MBA ’20).
“We started the Horned Frog Investment Network to give people access to investment opportunities that they had traditionally not seen before when it comes to the venture capital and private equity space,” Hicks said. “A big part of that is connecting our network of investors with really high-quality opportunities around the country.”
It works like this: Each year, two to three MBA students are hired to evaluate hundreds of companies to determine whether they’re a good fit for the investment network, while community members of the network are also trained on what to look for in deals. Companies that have been rigorously vetted by the students then propose their investment opportunities in meetings held throughout the year, hoping to inspire the potential investors that their company is the right fit.
“The students at TCU are getting in-class training of looking at deals, what are red flags and how do you overcome them, how to negotiate, all those kinds of things,” D’Souza said. “At the same time, community members who have an inclination and have the capital are also being trained on what to look for in deals and where to source them from.”
Once those seeking funding step out of the room, the potential investors discuss the pros and cons of each opportunity. If a company inspires sufficient interest, the group schedules a deep dive to learn more. From there, members opt in only to what excites them.
In Spring 2023, based on student recommendations, three startups pitched to a gathering of approximately 50 network members. One of these companies, Austin-based Spot Insurance, caught the attention of investors. Spot specializes in embedded insurance, offering consumers the option to add coverage to anything from flights to ski passes with a simple checkbox.
While seeking $30 million in funding, Spot Insurance presented to the Horned Frog Investment Network. Several network members were impressed and invested a total of nearly $900,000. This investment provided a significant boost to Spot Insurance, a company operating in a region not typically associated with venture capital. As D’Souza points out, the Horned Frog Investment Network is filling a crucial geographic gap in funding opportunities.
“This part of the country, flyover country, obviously isn’t getting the attention that the coasts are,” D’Souza said, noting that epicenters for venture capitalism include California’s Silicon Valley, New York City, Seattle and Boston.
While Texas currently ranks No. 16 in venture capital investment according to U.S. News and World Report, the Horned Frog Investment Network is playing a vital role in driving its growth. By providing funding and mentorship to promising startups, the network is helping to foster a thriving entrepreneurial ecosystem in the state. Altogether, Horned Frog Investment Network members have made investments to the tune of $4.5 million since its inception.
“There are very, very few schools in the country that have any sort of exposure to do real transactions in the venture capital world,” Hicks said, adding that the students “are basically given a massive leg up when it comes to entering the job market from both being prepared and having that true experience.”