Capital Factory marks the establishment of a startup incubator in Austin, Texas, with Joshua Baer as its co-founder and co-managing director.

Talking about the startup, Baer - who is also the founder and CEO of email organization startup OtherInbox - said that Capital Factory intends involving itself with companies that it can have the largest impact on!

Chocolate Factory is now seeking applications for its initial set of startups - the firm will choose ten finalists, thinning down to the winners' list by the middle of April. The deadline for the applications is April 3, 11.59 p. m. Pacific.

Along with $20,000 in cash, the winning startups will also receive $20,000 worth of "free stuff", inclusive of IT infrastructure and hosting, as well as contacts with 20 mentors - investors, serial entrepreneurs, and attorneys - who would spend time with the companies, helping them concentrate on the right priorities.

With regard to the criteria for selecting the mentors, Baer said Chocolate Factory would associate with successful entrepreneurs who have adequate business experience, and share a common spirit of helping the budding entrepreneurs, while enjoying the mentoring process.

Talking about Austin as the base for the company, Baer feels it is a great place to start a company, and it is exceptionally well-positioned for the tough economic times the country is passing through!