money moves

Houston fintech unicorn raises $300M in series C

Last year, HighRadius became Houston's first unicorn — a privately held startup valued at over $1 billion. Now, the fintech company has raised more funds. Image via HighRadius.com

Houston's first "unicorn," fintech company HighRadius, is growing up fast.

On March 30, HighRadius, a software-as-a-service (SaaS) business, reported it raised a $300 million Series C round of funding that values the company at $3.1 billion. D1 Capital Partners and Tiger Global Management led the round, with participation from existing investors ICONIQ Growth and Susquehanna Growth Equity. Also contributing to the round were four high-profile entrepreneurs:

  • Frank Slootman, chairman and CEO of Snowflake, a cloud-computing company based in San Mateo, California. Both D1 Capital and Tiger Global invested in Snowflake, which went public in September.
  • Michael Scarpelli, chief financial officer of Snowflake.
  • Tooey Courtemanche, CEO of Carpinteria, California-based Procore Technologies, which produces software for management of construction projects. D1 Capital and Tiger Global are investors in Procore.
  • Howie Liu, co-founder and CEO of Airtable, a cloud-based collaboration platform based in San Francisco. D1 Capital is among Airtable's investors.

In a news release, HighRadius says it will spend the money to fuel product development and expand its global reach.

The $300 million funding round comes nearly 15 months after HighRadius announced it raised $125 million in a Series B round that catapulted it to unicorn status. In the fundraising world, a unicorn refers to a startup valued at $1 billion or more.

HighRadius, based in West Houston, was founded in 2006. It employs more than 1,000 people around the world. The HighRadius website listed 16 job openings as of March 30, with 10 of them in Houston.

HighRadius' AI-powered SaaS offering streamlines accounts-receivable and cash-management processes. For instance, HighRadius' Cash Application software relies on AI to comb through documents like emails and invoices to automatically match incoming payments with customer accounts. The company has over 600 customers, including more than 200 of the Forbes Global 2000.

"Our goal has always been to build a long-lasting business that outlasts all of us," Sashi Narahari, founder and CEO of HighRadius, says in the news release. "I look forward to working with [our] high-quality, long-term investors, who share a common vision of transforming the office of the CFO using a combination of artificial intelligence built on top of connected-finance workspaces and embedded analytics."

In the news release, Daniel Sundheim, founder of New York City-based D1 Capital, says CFOs and their teams have historically relied on antiquated methods to handle accounts receivable and cash management.

"HighRadius is in the opening innings of defining the next big software market for the office of the CFO," John Curtius, a partner at New York City-based Tiger Global, says in the news release. "HighRadius bears all of the signs of being a category-defining business for order-to-cash automation."

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Building Houston

 
 

Here's what Houston research news dominated this year on InnovationMap. Photo via Getty Images

Editor's note: As 2022 comes to a close, InnovationMap is looking back at the year's top stories in Houston innovation. In many cases, innovative startups originate from meticulous research deep within institutions. This past year, InnovationMap featured stories on these research institutions — from their breakthrough innovations to funding fueling it all. Here are five Houston research-focused articles that stood out to readers this year — be sure to click through to read the full story.


Texas nonprofit cancer research funder doles out millions to health professionals moving to Houston

These cancer research professionals just got fresh funding from a statewide organization. Photo by Dwight C. Andrews/Greater Houston Convention and Visitors Bureau

Thanks in part to multimillion-dollar grants from the Cancer Prevention and Research Institute of Texas, two top-flight cancer researchers are taking key positions at Houston’s Baylor College of Medicine.

Dr. Pavan Reddy and Dr. Michael Taylor each recently received a grant of $6 million from the Cancer Prevention and Research Institute of Texas.

Reddy is leaving his position as chief of hematology-oncology and deputy director at the University of Michigan’s Rogel Cancer Center to become director of the Baylor College of Medicine’s Dan L. Duncan Comprehensive Cancer Center. Dr. C. Kent Osborne stepped down as the center’s director in 2020; Dr. Helen Heslop has been the interim director. Continue reading.

Rice University deploys grant funding to 9 innovative Houston research projects

Nine research projects at Rice University have been granted $25,000 to advance their innovative solutions. Photo courtesy of Rice

Over a dozen Houston researchers wrapped up 2021 with the news of fresh funding thanks to an initiative and investment fund from Rice University.

The Technology Development Fund is a part of the university’s Creative Ventures initiative, which has awarded more than $4 million in grants since its inception in 2016. Rice's Office of Technology Transfer orchestrated the $25,000 grants across nine projects. Submissions were accepted through October and the winners were announced a few weeks ago. Continue reading.

Houston researchers create unprecedented solar energy technology that improves on efficiency

Two researchers out of the University of Houston have ideated a way to efficiently harvest carbon-free energy 24 hours a day. Photo via Getty Images

Two Houstonians have developed a new system of harvesting solar energy more efficiently.

Bo Zhao, the Kalsi Assistant Professor of mechanical engineering at the University of Houston, along with his doctoral student Sina Jafari Ghalekohneh, have created a technology that theoretically allows solar energy to be harvested to the thermodynamic limit, which is the absolute maximum rate sunlight can be converted into electricity, as reported in a September article for Physical Review Applied.

Traditional solar thermophotovoltaics (STPVs), or the engines used to extract electrical power from thermal radiation, run at an efficiency limit of 85.4 percent, according to a statement from UH. Zhao and Ghalekohneh's system was able to reach a rate of 93.3 percent, also known as the Landsberg Limit. Continue reading.

Texas A&M receives $10M to create cybersecurity research program

Texas A&M University has announced a new cybersecurity-focused initiative. Photo via tamu.edu

Texas A&M University has launched an institute for research and education regarding cybersecurity.

The Texas A&M Global Cyber Research Institute is a collaboration between the university and a Texas A&M University System engineering research agency, the Texas A&M Engineering Experiment Station. The research agency and Texas A&M are also home to the Texas A&M Cybersecurity Center.

The institute is funded by $10 million in gifts from former Texas A&M student Ray Rothrock, a venture capitalist and cybersecurity expert, and other donors. Continue reading.

Houston research organization doles out $28M in grants to innovators across Texas

Houston-based Welch Foundation has awarded almost $28 million in chemical research grants throughout Texas this year. Photo via Getty Images

Chemical researchers at seven institutions in the Houston area are receiving nearly $12.9 million grants from the Houston-based Welch Foundation.

In the Houston area, 43 grants are going to seven institutions:

  • Baylor College of Medicine
  • Rice University
  • Texas A&M University
  • Texas A&M University Health Science Center
  • University of Houston
  • University of Texas Health Science Center at Houston
  • University of Texas Medical Branch in Galveston

The Welch Foundation is awarding almost $28 million in chemical research grants throughout Texas this year. The money will be allocated over a three-year period. Continue reading.

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