following the money
These 10 Houston startups closed funding rounds in Q2
It's been a banner year for Houston startups raising funds. From an Amazon competitor emerging from stealth and snagging a $25 million series A to a $74 million series B for a clinical-stage biopharmaceutical company, Houston's innovative companies have seen a great second quarter of 2021 in terms of VC activity.
In fact, according to a report from Houston Exponential, Q2's funding activity follows a 12-month period of $1 billion raised in Houston. This report included the first quarter's deals, which is rounded up in this article.
In case you missed some of these Q2 deals, InnovationMap has rounded up all its coverage of funding rounds closed between April and June based on previous reporting. Scroll through to see which Houston startups are catching the eyes — and cashing the checks — of investors.
Tvardi Therapeutics Inc. has fresh funds to support its drug's advancement in clinical trials. Photo via Getty Images
A Houston-based clinical-stage biopharmaceutical company has raised millions in its latest round.
Tvardi Therapeutics Inc. closed its $74 million series B funding round led by new investors New York-based Slate Path Capital, Florida-based Palkon Capital, Denver-based ArrowMark Partners, and New York-based 683 Capital, with continued support and participation by existing investors, including Houston-based Sporos Bioventures.
"We are thrilled to move out of stealth mode and partner with this lineup of long-term institutional investors," says Imran Alibhai, CEO at Tvardi. "With this financing we are positioned to advance the clinical development of our small molecule inhibitors of STAT3 into mid-stage trials as well as grow our team." Click here to continue reading.
A Houston biotech company has raised $38.1 million. Photo by Dwight C. Andrews/Greater Houston Convention and Visitors Bureau
Sporos Bioventures LLC launched this month after closing a $38.1 million round of series A financing.
The Houston-based biotech company aims to accelerate the development of breakthrough therapies for cancer and immune diseases by sharing resources, capital, access to clinical trial infrastructure, and talent from within its knowledgeable team of biotech executives, entrepreneurs, academic scholars, and investors. The company was launched with four entities: Tvardi Therapeutics, Asylia Therapeutics, Nirogy Therapeutics, and Stellanova Therapeutics.
The most advanced of the four entities, Tvardi, is currently in Phase 1 clinical trial to evaluate it's STAT3 oral inhibitor. It was named a "most promising" life sciences company at the 2020 Texas Life Science Forum, hosted by BioHouston and the Rice Alliance in December. The remaining entities are in the development stages and are focused on cancer, autoimmune disease, fibrosis, and tumor growth, among other conditions.
"Sporos was founded to accelerate the development of new medicines by addressing inefficiencies and risk in the establishment of new biotech companies," Peter Feinberg, Sporos co-founder, said in a statement. "By leveraging our extensive network, including the Texas Medical Center, we first identify transformative scientific opportunities and then deploy our top-tier talent, funding, and operational support to drive these insights into a growing pipeline of first-in-class treatment options." Click here to continue reading.
Houston-based Cart.com, which equips e-commerce businesses with a suite of software services, has raised $45 million in venture capital investment since its founding in September. Photo via cart.com
An end-to-end e-commerce services provider based in Houston has closed its series A round of financing led by a Houston venture capital group.
Cart.com announced the closing of its $25 million led by Houston-based Mercury Fund and Florida-based Arsenal Growth with contribution from Austin-based Moonshots Capital and Ohio-based Scarlet Venture Fund. The new round follows its $20 million Seed round led by Amsterdam-based Bearing Ventures.
The company was founded last September by two former entrepreneurs — Omair Tariq, former executive at Home Depot and COO of Blinds.com, serves as CEO and Jim Jacobsen, co-founder and former CEO of RTIC Outdoors, serves as executive chairman.
"We know the pain points brands face in the e-commerce value chain because we have experienced them firsthand. We built Cart.com to solve those problems and deliver unequaled value for brands from a single platform," Jacobsen says in a news release. Click here to continue reading.
Syzygy Plasmonics has raised $23 million thanks to international support. Photos via plasmonics.tech
A Houston startup founded based off research coming out of Rice University has closed its series B funding, the company announced this week.
Founded in 2017, Syzygy Plasmonics is a chemical company developing a photocatalyst-powered hydrogen fuel cell technology that produces a cheaper source of energy that releases fewer carbon emissions. As of this week, the company has $23 million more to fund its scaling and grow its team thanks to the closing of its series B financing led by Hong Kong-based Horizons Venture. Equinor Ventures, a new investor, also joined in on the round, along with previous seed and series A investors including The Engine, GOOSE Capital, and Evok Innovations.
"With renewable electricity as an energy source, our technology is cleaner, and because of the stability and activity of our photocatalysts, we can drive dozens of possibilities, tuning reactions that produce different chemicals," says Trevor Best, Syzygy Plasmonics' co-founder and CEO, in a news release. "Our initial product will focus on eliminating emissions from hydrogen production, transforming the industrial process involved in making semiconductors, LEDs and metals. Our system will also enable industries that are consumers of hydrogen fuel cells, like fuel cell vehicles." Click here to continue reading.
Through a series B round and a federal grant, BiVACOR has raised $22 million in funding ahead of human trials. Photo via bivacor.com
Houston-based medtech company BiVACOR has picked up $22 million in funding — in the form of a series B round and a federal grant — to propel development of its Total Artificial Heart device for treatment of severe heart failure.
In a May 19 news release, BiVACOR says it received a series B round of $19 million and a National Institutes of Health grant of $3 million. Boston-based Cormorant Asset Management and Australia's OneVentures, through its OneVentures Healthcare Fund III, led the round.
OneVentures first invested in BiVACOR three years ago. According to Australia's Financial Review, OneVentures initially pumped $3 million (Australian dollars) into BiVACOR, with the potential of contributing as much as $10 million if BiVACOR met certain milestones. BiVACOR received a round of seed funding from U.S. investors in 2013.
"BiVACOR's one-of-a-kind technology is supported by a remarkable team that has moved this technology a significant distance toward the clinic," Paul Kelly, managing partner of OneVentures, says in BiVACOR's news release. Click here to continue reading.
Hello Alice Co-Founders Carolyn Rodz and Elizabeth Gore recently raised funds to continue to grow their company that supports startups and small businesses. Photos via helloalice.com
A tech company focused on supporting and growing startups and small businesses has reached its own next big growth milestone this week.
Machine learning-enabled small business support company Hello Alice, founded in Houston with a large presence in California, has closed its $21 million series B raise led by Virginia-based QED Investors with participation from new investors including Backstage Capital, Green Book Ventures, Harbert Growth Partners, and How Women Invest.
The raise comes at a pivotal time for the company, which worked hard during the pandemic to support struggling business and now aims to support entrepreneurs of all backgrounds as the world re-emerges out of the COVID-19 era. The fresh funds, according to a press release, will be used to refine the predictive capabilities on its platform, launch a mobile application, and more.
"These investments signal that despite the recent challenges small business owners have faced, there is an economic tidal wave that will revitalize Main Street, led by the entrepreneurs we serve," says Elizabeth Gore, co-founder and president of Hello Alice, in the release. Click here to continue reading.
Houston-based data management startup Graylog has fresh funds to fuel its growth. Photo via Graylog.org
A Houston company that's created a centralized log management solution has closed a new round in funding.
Graylog closed its $18 million growth equity round led by Richmond, Virginia-based Harbert Growth Partners, a new investor, and Minneapolis, Minnesota-based Piper Sandler Merchant Banking, the company announced today. The round also received contribution from existing investors Houston-based Mercury Fund and Integr8d Capital, as well as Germany-based HTGF.
"This investment will enable us to accelerate our global go-to-market strategies and enhancements to the award-winning solutions we deliver for IT, DevOps, and Security teams," says Andy Grolnick, CEO of Graylog, in a press release. "We're excited to have the support of new and existing investor partners to help us realize our potential." Click here to continue reading.
Houston-based Stellanova Therapeutics closed a $15.5 million series A financing this month, which will advance the company's first-in-human clinical trials for oncology and help build out its team.
Stellanova is a resident company at Johnson & Johnson's biotech incubator in the TMC (JLABS @ TMC) and is one of four entities that make up cancer and disease biotech company Sporos Bioventures, which officially launched last month after closing a $38.1 million series A of its own.
Stellanova is focused on advancing therapies for cancers that are resistant to current treatments, like chemotherapy and immune therapies. According to a release, it has seen unprecedented anti-tumor activity in preclinical models of pancreas and triple negative breast cancer through the use of its lead antibody, which targets DKK3, a factor secreted by cancer-associated fibroblasts that spur tumors. Click here to continue reading.
MacroFab's latest $15 million round will help it expand and grow throughout North America. Photo via macrofab.com
A Houston company that has optimized electronics manufacturing by setting up a digital platform connecting a network of factories across North America has raised its latest round of funding.
MacroFab closed a $15 million series B round led by New Jersey-based Edison Partners. ATX Venture Partners also participated, along with strategic investor Altium Limited, a leader in the electronics design software space.
The new funds will go toward keeping up with MacroFab's growth, specifically in expanding in North America and an increased investment in research and development, sales and marketing, and the opening of a new distribution center for international logistics this summer, according to a news release.
"MacroFab customers found themselves in a perfect storm last year, and went from being curious about cloud-enabled manufacturing to going all-in," says Misha Govshteyn, MacroFab CEO, in the release. "The turbulence started with the trade war and tariffs, and only accelerated with massive delays in delivering products from overseas and the ongoing microchip availability crisis." Click here to continue reading.
Molecule has closed new funding in order to focus on the energy transition. Photo via Getty Images
A Houston startup with a software-as-a-service platform for the energy transition has announced it closed a funding round with participation from a local venture capital.
Molecule closed its $12 million series A, and Houston-based Mercury Fund was among the company's investors. The company has a cloud-based energy trading and risk management solution for the energy industry and supports power, natural gas, crude/refined products, chemicals, agricultural commodities, softs, metals, cryptocurrencies, and more.
"We led the seed round of Molecule upon their formation and are excited to participate in their series A," says Blair Garrou, co-founder and managing director of Mercury, in a news release. "Molecule's success in the ETRM/CTRM industry, especially in relation to electricity and renewables, positions them as the company to beat for the energy transition in the 2020s." Click here to continue reading.