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Female-led venture capital firm launches in Houston to move the needle on investment in women-owned companies

A new venture capital firm launched in Houston to focus on female-led startups. Courtesy of The Artemis Fund

Three powerhouse investment minds have teamed up to launch a female-focused seed and series A venture capital firm in Houston.

In its first $20 million fund, The Artemis Fund will invest in around 30 women-led companies, and will award a $100,000 investment prize at the Rice Business Plan Competition, which takes place April 4 through 6. According to the company's press release, The Artemis Fund is the first of its kind — being female-led and female-focused — in Houston.

"There is a wealth of female leadership in the Houston innovation ecosystem, and we would like to see the same representation in the investor the investor community to help female founders thrive," says Stephanie Campbell, co-founder and principal of The Artemis Fund.

Campbell, and her co-founders, Leslie Goldman and Diana Murakhovskaya, all have extensive experience in venture capital. Campbell has served as managing director for The Houston Angel Network since 2016, while Goldman currently sits on the board of the organization and Murakhovskaya has been a previous investor member. Murakhovskaya worked for a long time in New York City and co-founded the Monarq Incubator, which focuses on women-led startups.

Women make up only 9 percent of decision makers in VC firms in the United States, and women-led companies only receive of 2 percent of venture capital, the release cites. This imbalance is something Artemis exists to change, especially since two-thirds — $22 trillion — of the nation's personal wealth will be controlled by women by 2020, the release states, citing the BMO Wealth Institute, and women currently drive 85 percent of purchases, or $150 billion.

While fewer and farther in between, venture-backed, women-led startups are more profitable. Reportedly, they achieve higher revenues by 12 percent, according to the Kauffman Fellows Report, and higher returns by 63 percent, per First Round's 10-Year Report.

"I'm enthusiastic about launching The Artemis Fund in Texas and reaching a new class of funders to invest in the most diverse tech-enabled companies from across the country," says Murakhovskaya in the release. "Houston, in particular, is uniquely positioned to be the next big tech hub with one of the most active angel groups, a burgeoning innovation ecosystem, support from Houston Exponential, top universities, and historically sidelined capital ready to be activated."

The three principals and co-founders are arguably the fund's greatest asset — from their connections, experience, and reputation. Together, they have in backgrounds in business, law, and engineering.

"We want female entrepreneurs to feel that Houston is a welcoming place to start, grow, and support female-led businesses," says Goldman in the release. "The Artemis Fund will play an integral part in creating this environment."

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Building Houston

 
 

XSpace — a huge multi-use commercial condo concept — will be opening its Houston facility in the next few months. Rendering courtesy of XSpace

To some, Houston’s lack of zoning laws is a beautiful thing. The first time Byron Smith visited the city, he remarked on seeing a church, school, office building, and strip club all in startlingly close proximity.

At the time, the Sydney-born entrepreneur, whose previous experience was primarily in the automotive industry, was living in New York. But he fell in love with Space City.

“I was like, ‘We need to be in Texas,” he recalls, referring to expanding his next venture, XSpace, to the Lone Star State.

XSpace is a multi-use commercial condo building that allows entrepreneurs to own a home for their business.

“We’re a cool warehouse space that you own,” Smith explains, calling it “evolutionary space” where a business can grow from the roots up.

Though his family business was commercial real estate, Smith first dipped his toe into working with buildings with last year’s opening of the first XSpace in Austin. The city became “a natural fit” for the first project because Smith identified it as “a little bit more receptive to new things.” But Houston was part of the plan from the very beginning.

Located at 7022 Old Katy Road — close to both an escape room and an Aston-Martin dealership, among other diverse businesses — the Houston XSpace’s 86 units are already between 20- and 30-percent pre-sold, says Smith.

Rendering courtesy of XSpace

Confirmed owners of the spaces include “car guys,” such as a car-wrapping business; media companies that plan to podcast from XSpace; and an interior design company. Smith says that he’s been impressed with Houston’s depth of market.

“We’re trying really hard not to be rich-guy car condo stuff,” explains Smith. “It’s about cool, interesting people who are successful or are going to be successful.”

Though multiple businesses will all operate in XSpace, don’t think of it as a coworking space. In fact, coworking space is just a component included in the package of what owners get when they purchase part of XSpace. That’s inside the Owner’s Lounge, a flexible 4,000-square-foot area.

Each unit has natural light, but also metered electric and hot and cold running water. The whole facility is air-conditioned and well-ventilated and offers 24/7 access. The building is triple-gated for optimum security and includes a backup generator to ensure that owners will be able to work even in the case of another power grid failure.

Smith says that groundbreaking for XSpace will take place in seven weeks. Likely, owners will be able to start moving into the building in the summer of 2024. Until then, Smith says to expect some “sexy announcements” about upcoming partnerships and additional XSpace sites.

Though Smith says that global expansion isn’t yet in the plans for XSpace, “North American domination” is.

“All the cool cities, we’re going to be there,” he says. And it was all inspired by the coolest city of all and its eclectic business landscape.

Rendering courtesy of XSpace

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