The Startup Factory

The Startup Factory

The Startup Factory was founded in 2008 by Chris Heivly and Dave Neal in Chapel Hill, North Carolina. Heivly previously co-founded MapQuest, sold to AOL in 1999, and later served as a vice president at AOL. The firm began as an accelerator and seed-stage investor, evolving into a multi-family office that manages capital for multiple families while maintaining its early-stage focus. The firm invests across a range of sectors including enterprise software, digital health, AI/ML, fintech, proptech, climate tech, cybersecurity, and industrial technology. It typically targets pre-seed and seed rounds, providing initial capital through its accelerator program and co-investing alongside other funds in follow-on rounds. Confirmed portfolio companies include Windsor Circle (acquired by Alteryx per public record), Automated Insights (acquired by Vista Equity Partners per public record), and RMS (acquired by Duke Energy per public record). The firm maintains offices in Chapel Hill, Durham, New York, and Craighall, South Africa, giving it a cross-Atlantic footprint. The firm has deployed capital into over 150 companies since inception, with a team of three named partners — Heivly, Neal, and Eric Coale. The Startup Factory also operates an accelerator that runs cohort-based programs, providing mentorship and office space in addition to capital. In 2023, the firm expanded its South Africa presence through a partnership with the Craighall-based startup ecosystem (per public record, 2023). The firm's structural differentiator is its hybrid model: it functions as both a family office and an active accelerator, giving it direct deal flow generation rather than relying on inbound sourcing. This approach allows the firm to shape portfolio companies from inception while offering its family office investors co-investment rights across a diversified early-stage portfolio.