Q3 in review
Here's what Houston startups snagged fresh funding last quarter
With Houston's business and innovation community firmly in its final leg of 2023, it's time to look back on funding from the previous quarter.
While last quarter revealed a decline in VC funding in line with the rest of the country, per PitchBook data, around 60 Houston-area companies secured venture funding in the third quarter. These deals spanned across angel and seed rounds all the way up to a monolith of a series C and unicorn status achievement.
According to InnovationMap reporting, 5 Houston-based companies announced VC funding between July and September. Here's a roundup of these second quarter deals — click on each story to read more.
Axiom Space CEO Michael Suffredini (right) has announced the company's series C round with support from Aljazira Capital, led by CEO Naif AlMesned. Photo courtesy of Axiom Space
Houston has another unicorn — a company valued at $1 billion or more — thanks to a recent round of funding.
Axiom Space released the news this week that it's closed its series C round of funding to the tune of $350 million. While the company didn't release its valuation, it confirmed to Bloomberg that it's over the $1 billion threshold. Axiom reports that, according to available data, it's now raised the second-most funding of any private space company in 2023 behind SpaceX.
Saudi Arabia-based Aljazira Capital and South Korea-based Boryung Co. led the round. To date, Axiom has raised over $505 million with $2.2 billion in customer contracts, according to the company.
“We are honored to team with investors like Aljazira Capital, Boryung and others, who are committed to realizing the Axiom Space vision,” Axiom Space CEO and president Michael Suffredini says in a news release. “Together, we are working to serve innovators in medicine, materials science, and on-orbit infrastructure who represent billions of dollars in demand over the coming decade. Read more.
A Houston startup based out of the TMC Innovation Factory has announced funding and upcoming trials. Photo courtesy of TMC
Fueled by fresh funding in the bank, a medical device startup has announced upcoming trials.
VenoStent, Inc., a company developing an innovative tool to improve outcomes for hemodialysis patients, has closed $16 million in a series A round of financing. Two Charleston, South Carolina-based firms — Good Growth Capital and IAG Capital Partners — led the round.
The company also announced it received Investigational Device Exemption from the FDA for its United States clinical trial, SAVE-FistulaS.
“Our mission at VenoStent is to improve the quality and length of life of dialysis patients. On the heels of our very promising results in several preclinical studies and a 20-patient feasibility study that led to our Breakthrough Designation last year, this recent IDE approval is perhaps our biggest milestone to date," Tim Boire, CEO of VenoStent, says in a news release. "We now enter an exciting new epoch in our company’s development that we believe will ultimately result in FDA Approval and vastly improve the quality and length of life for patients." Read more.
CardioOne has fresh funding and new partners, resulting in a five-state expansion. Photo via Getty Images
With fresh funding, a Houston-based health tech platform that's less than a year old has grown its United States footprint.
CardioOne, which has created a cardiology care delivery enablement platform that serves independent cardiologists, has closed an $8 million seed round of funding and secured three new partnerships. Axios and Crunchbase report that the round has closed, and CardioOne confirms the funding and new partnerships in a press release.
The company has three new partnerships with independent cardiology clinics in New Jersey, Florida, and Pennsylvania, Cardiac Associates of New Jersey, Twin Hearts LLC, and Corrieius Cardiology. The trio joins existing partner practices in Texas and Maryland. Read more.
Industrial Data Labs announced the close of its $1.5 million seed round of funding. Photo via Getty Images
A Houston startup that's on a mission to transform and expedite data processing for its industrial clients has raised seed funding.
Industrial Data Labs announced this week that it's closed a $1.5 million seed round of funding. The company has created an applied artificial intelligence technology for the pipe, valve, fitting, and flange, or PVF, industry's inside sales team. The terms of the seed round were not disclosed.
"Our groundbreaking AI-Powered Inside Sales Copilot is transforming the way inside sales teams operate in the PVF industry," Marty Dytrych, co-founder and CEO of Industrial Data Labs, says in a news release. "By embedding our solution into existing BOM and MRO workflows, we empower teams to achieve unmatched efficiency, accuracy, and sales performance.” Read more.
NanoTech closed an oversubscribed round of funding, the company announced this week. Photo courtesy of NanoTech
A Houston startup that has developed an innovative coating material that can reduce energy consumption has raised fresh funding for its cross-country expansion.
NanoTech Inc. announced its latest funding news — an oversubscribed funding round that brings onboard a handful of new investors. The details of the round were not disclosed, but NanoTech did release that the round included participation from three institutional investors, two corporate-strategic investors, and seven family offices. These entities join initial investor, Austin-based Ecliptic Capital.
NanoTech's flagship product is a waterproof thermal coating, called the Nano Shield Cool Roof Coat, which began rolling out across the country this year. Not only does the product reduce energy costs for the building owner, but it reduces emissions as well. Read more.
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