By Christie Slaton Zgourides
This episode’s guests include Nicholas “Nick” Lewis, a financial services executive with the Lewis Group, and Ben Jones, co-founder of Jockey Ventures, a venture studio that collaborates with startup businesses to build scalable companies. They join Marc Ebinger of Crükus Virtual Staffing and Jenevy Sims of Evolve Firm to share the mission and goals of Alamo Angels, a San Antonio-based investment group supporting early-stage companies through funding, mentorship, and fostering innovation.
Meet the Guests
Nick and Ben, investors through Alamo Angels, came to the investment group from different backgrounds, which is emblematic of its investor diversity. Nick joined his dad’s financial firm as a licensed financial planner and has been working there for about five years.
Nick met Juan “Sebastian” Garzon, Executive Director on the Board of Alamo Angels, and when he saw how it was a driver of growth and opportunities in San Antonio, he decided it was an exciting network he wanted to join.
In 2021, Ben brought his venture-backed technology company to San Antonio, which he sold soon after. This spurred his interest in the venture world because he saw the returns that investors in his company had earned. Ben says, “How do I get into to be an investor instead of the one being invested in?”
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Alamo Angels Origin
In December 2016, a small group from Rackspace Technology and some other entrepreneurs came to San Antonio and founded the company for local startups. It has since evolved and is currently in its strongest position with the largest network and membership of any investment group in Texas.
Alamo Angels — Process, Expectations, and Clients
Noting that the investment process can be unclear, Marc began the discussion by asking Ben and Nick to walk through the investment process, investor expectations, and what leads founders to Angel investors.
1. A Simple Investment Thesis: Alamo Angels looks for an investment thesis tackling real-world problems with businesses that can be venture-backed and are highly scalable. (An investment thesis includes reasons supporting investment, competitive advantage, market, and risks.)
2. Diverse Membership and Agnostic Approach: The 136 current investor members represent diverse industries, such as medical technology, biotech, transportation, finance, law, and many others. The agnostic approach means they are not limited to specific industries.
3. Entrepreneur Attitude: Entrepreneurs who come to Alamo Angels are out-of-the-box thinkers who want to do something exceptional and venture-backed and ask, “What is the next stage for me?”
4. Companies with Traction: Alamo Angels looks for companies beyond the idea phase with “a little bit of traction,” with either an LOI (Letter of Intent) from a customer or an MVP, a minimum viable product. Companies can be early-stage or later-stage funded.
5. Application Process: Whether a company applies online or knows an investor in the network, someone will help applicants submit information about what the company does, what the product is, how far along it is, what traction it has, how much funding it has, and who the co-founders are.
6. Committee Review: The application is evaluated by a couple of different committees who say they want to take that to the next stage, which is potential investing and showcasing the product to the whole group of investors.
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In-House Resources for Entrepreneurs
As Alamo Angels offers considerable support to start-ups, Jenevy asked the guests to elaborate on the available resources.
They explained that the online application process has staff available to help founders answer questions about their company, determine eligibility, and decide whether they need to submit additional product information. The goal is to help founders collaborate with Alamo Angels to showcase their company to investors.
They are committed to seeing local companies succeed. Emphasizing Alamo Angels’ investor diversity, Nick pointed out that if founders need an attorney, financial services, tech experts, or almost any other professional assistance, Alamo has a “good range of people in different industries, which can provide a lot of value.”
Founders who are not ready for investors can go to Geekdom, San Antonio’s Start-Up Hotspot and Co-Working Space. Geekdom’s CEO, Charles Woodin, is also a member of Alamo Angels.
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The Pitch Event, A Shark Tank-esque Opportunity
The number of monthly submissions varies depending on the time of year, but it's always a great time to raise capital. Ben estimated that at least 40 to 50 companies are evaluated monthly.
In several review cycles, companies are evaluated through referrals or online submissions, and about eight companies go through the pre-investment committee.
The final stage is pitch day with three companies. Nick said, “At that point, it's very Shark Tank-esque. Three companies pitch once a month. They take about 15 minutes each.”
Companies answer questions, give their pitch, and are sometimes picked apart because there are experienced investors from different industries, which is another benefit of having such a wide network of investors.
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Personal Character Essential
Marc observed that besides the company qualifying, the founders' character is essential because it's one thing to have a great idea but another to execute it. He asked the guests to discuss how they filter out less-than-ideal founders.
Ben explained that they look for people who are hyper-focused on a problem and want to solve it. Usually, they have encountered this in their own lives. The concern is when the founder’s ego interferes, and they believe they are the only ones who can build the product. This is not what investors want.
Instead, investors want people who understand that they risk failure. If the founder believes nobody else can do it, they will have trouble because this is not only a capital business but a people business. Founders focused on the capital side, the exit, or the liquidity event, are in it for the wrong reasons.
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Investment Focus on Ideas and People, Not Processes
Marc asked whether investors are looking at processes as well as other factors.
As the purpose is angel investing, they are focused on the idea and an MVP, which are “tied together with a loose string,” so companies usually don’t have processes. Companies might have ten or fewer employees; most often, it’s fewer than six.
The primary questions become: is this a good idea or a big enough problem? Are these the right people to build that?
Jenevy observed that investment is risky, but Angels Investments vets companies, so they're ready for the pitch. She added, “For any business owner looking for that next stage in their business, I think Angels Investments is the way to go.” She added, “This is how you build your legacy in San Antonio. To have Alamo Angels understand the people, understand the culture, and then willingly invest in it — I think there's so much value in that.”
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Alamo Angels' Process Differs from Shark Tank
While the process has a Shark Tank-esque style, Alamo Angels' process differs considerably from the TV show, although the pitches and discussion sessions are recorded.
1. Longer Pitches: Companies on Shark Tank are given a few minutes, whereas Alamo allows more time, beginning with a 10-15 minute pitch, then investors ask questions.
2. No Bidding: Investors are not trying to invest there on the spot. After the pitches,
investors leave the room. They have an internal discussion where they take a “deep dive” into the companies and discuss what is good or bad about them.
3. Group, Not Individual Investing: Alamo Angels is a group investing a larger sum of money. It's not one individual.
4. Immediate and Delayed Investment: Some investors are ready to write a check during the deep dive, and others may wait for six months or a year to commit. Companies may continue to build relationships with investors over months and years.
5. Continual investment: Some in the group may invest several times throughout the company’s life.
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Pitch Event Recordings for Investor Use
As a podcast host, Marc was particularly interested in how Alamo Angels might use the recordings of pitches and deep-dive discussions of companies.
At this point, the recordings are used for investors who cannot attend the pitches. With an extensive network of investors in San Antonio and a network partner in the Rio Grande Valley, sharing information with everyone is necessary.
Marc recommended they look at a PR firm or someone who can help them release the content. The material could provide social media and promotional content that could be packaged. Ben responded that this possibility had been discussed, but they were not ready to move in that direction.
Marc pointed out that they could find people who would do the work and not charge them because they would want to be connected to what Angels is doing. He also recommended an associated podcast a couple of times a month with follow-up because there would be monetization.
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Angels Investing is About Education
For entrepreneurs and investors, the greatest need is investment education. Ben noted that he still didn’t know how to invest even after going through the venture capital cycle and raising $22 million for his company.
However, getting invested is not as hard as it looks. If companies have a great startup and high-growth plans, they can get invested. The Alamo Angels network makes investing less confusing for investors. No one is coming in completely blind, not knowing how to write their first check, what to do, or what the documents are.
Ben said, “It’s all done for you. Just write the check, if you will.”
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Networking with Membership and Vetting
Marc asked what it takes to become a member of Alamo Angels.
Investors are accredited, so they are vetted. Members are wanted for the right reasons: to be there for the growth of San Antonio and to add value to the network.
Vetting is not detailed, but they look at credit, assets, equity in a house, $250k annual income for two years in a row, and $1 million of assets outside of a primary residence. The specifics may vary but are generally in this range.
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Alamo Angels Chapters and Expansion
San Antonio is the main Alamo Angels chapter with local and Austin-based investors. It has expanded to Rio Grande Valley because it is a strongly LATAM-focused (Latin America) investor network and because there are a lot of startups.
Ben explained, “The first place LATAM investors land is in San Antonio or Miami. So we're building a culture around that because some great unicorns and startups come out of Latin America, and those founders are looking for a place to go. That bridge extends down to the Rio Grande Valley.”
The dream is to become a tech hub or high-growth company hub in San Antonio that brings high-growth companies here as well as high-growth startups. Those companies are born out of venture capital seed investing.
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Relationship-Based Investment, Not Predatory Investing
Marc questioned whether the investing side is predatory, aggressive, or more gentle. However, he also noted that while Alamo Angels investors aim to make money, they also support the local community and investors.
Ben compared Alamo Angels to an uncle investing in your company — someone you have a relationship with. He explained that these people will believe in a little more than an idea. Investors want to see companies succeed as opposed to later-stage investing, which are venture capital firms and debt lenders. The terms with Alamo Angels are balanced for investors and founders.
Nick explained that most founders raising a million dollars are offering "X" for that million dollars. Alamo Angels aren’t negotiating; instead, founders are asking who wants in on this? It’s more of an offer than a deal.
They indicated that there would be back-and-forth discussions with Sebastian as the primary negotiator, though a lead investor may join. The usual investment amounts are $50k up to the highest at $300k to $500k.
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The Average Percentage Rate
Companies pitching to Alamo Angels are also pitching to similar groups globally. The terms set are generally the same or similar to those of the founders of other investment groups. While there are outliers, most companies offer 10% to 20% equity in the company during their first round. Nick said that sometimes there’s no equity, only debt.
One outlier is the Bay Area, which is higher because the demand is higher. Those who do raise the capital tend to be the most successful companies, which is why the valuations tend to be higher.
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Non-Monetary Rewards of Investment
Jenevy asked the guests what part of this made them happy to continue doing it, and they offered a number of reasons.
1. Helping The City of San Antonio Grow: They agree that while they see a considerable mix, about 30% of investments are in San Antonio. Other major regions are the Rio Grande Valley and Austin, and they see many LATAM companies.
2. Seeing San Antonio-based Companies Grow: Some large San Antonio-based companies are growing out of San Antonio and are getting recognition through news coverage, including in The Business Journal.
3. Watching Founder Success: Founders moving toward venture capital investment a few years ago are now raising $40-50 million in San Antonio. Regular people have found success.
4. Building An Entrepreneurial Mindset: Investment growth in San Antonio builds high-paying jobs and increases the entrepreneurial mindset, which creates a new dynamic where employees join the startup instead of established companies.
5. Shifting Investment Expectations to San Antonio: San Antonio's success builds an investment ecosystem, which lets young entrepreneurs know they don’t have to seek funding in Austin or elsewhere but can stay here.
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Competing with Austin for Investment Opportunities
Austin has similar investment groups but with a larger and more dynamic tech ecosystem, given the presence of Dell, Tesla, and large facilities. While San Antonio is trying to compete with that, it is a different city with a more locally-based community. The guests agree that climbing here is a higher hill because the ecosystem is not yet as mature.
However, Geekdom and Alamo Angels are tightly connected and work together to help entrepreneurs. Investors are also more available than they would be in Austin.
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Rejection as a Beginning
The greatest myth of investing is thinking that an initial rejection is the end when it can be the beginning. With Alamo Angels, investors are available, and while they might not write a check on the first round, it can be a tenacity and character test. Founders can take investors to lunch, build relationships, and obtain future investments. [00:40:23]
Alamo Venture Fellows
Alamo Angels has outreach programs with UTSA, Trinity University, Incarnate Word, and others. Students come to Angels as interns to help organize pitch events, visual content, and social media. The organization also hosts Coffee with Angels, pickleball, and other events.
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Women and Investing
Some Alamo Angels members are advocating for women and investing initiatives and have hosted three or four investing events. More women investors have joined, and more women founders are seeking investments.
Those interested in becoming investors or seeking investments can find more information at alamoangels.com.
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Meet the Hosts and Guests
Ben Jones, co-founder, leads Jockey Ventures as its managing partner. After selling his on-demand delivery company, Skipcart, to 7-Eleven, he wanted to keep solving challenges through technology and innovation. He found the venture studio approach, and Jockey Ventures came to life. Jockey brings ideas, capital, resources, and talent together. https://jockeyvc.com/es/
Nicholas Lewis is a Financial Services Executive at The Lewis Group. He is a University of Texas at San Antonio (UTSA) graduate with degrees in Business Management, Spanish Language, and Communications. He is involved with a wide range of business and charitable organizations in Texas, and he loves contributing to the growth of San Antonio. https://www.lewisgrp.biz/
Marc Ebinger, the Let’s Talk Business podcast host, is a former USAF Veteran, retired police sergeant, public speaker, and networking expert. He is also the founder of Crükus Virtual Staffing, a company that supports insurance agents and business owners by providing virtual assistant staffing solutions. Crükus helps clients save on labor costs and increase efficiency by matching them with experienced overseas administrative assistants who handle tasks ranging from policy management to client communication. https://www.satalkradio.com/
Jenevy Sims owns Evolve Firm, a marketing agency that creates strategies to help businesses grow and adapt. Jenevy brings a unique perspective to digital marketing, emphasizing the importance of a well-rounded approach that integrates content, SEO, and customer reviews. With a keen understanding of evolving marketing trends, she guides her clients in establishing a robust digital presence while staying grounded in authentic, community-focused engagement. theevolvefirm.com/
Christie Slaton Zgourides, owner of Christie Zgourides Editing, is a writer, editor, and author coach with over 30 years of experience in business and academic settings. She has taught writing and editing in university composition courses and has edited a wide range of content, including digital articles, self-improvement books, professional journal articles, memoirs, and fiction. Christie helps authors transform their ideas and passions into publishable manuscripts and works with businesses to create engaging blogs, video scripts, and other essential documents. czediting.com
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