VENTURE ADVENTURES

Here's what 6 Houston startups have raised millions of dollars this year so far

Houston startups have raised millions so far this year. Getty Images

This year is starting strong when it comes to Houston startups receiving funding. From a $125 million raise from Houston's first unicorn to a local fund gathering up $50 million to deploy in mobility startups, Houston funding news has been pretty exciting.

In case you missed some of these headlines, InnovationMap has rounded up these seven deals based on previous reporting. Scroll through to see which Houston startups are catching the eyes — and cashing the checks — of investors.

HighRadius Corp.

Houston-based HighRadius has reported reaching unicorn status following a $125 million raise. Photo via highradius.com

Let's start with the biggest one, shall we? Houston-based HighRadius, an artificial intelligence-powered fintech software company, closed a $125 million raise, which earned it a a new title: Unicorn.

The series B round, which achieved this status for HighRadius, was led by ICONIQ Capital, with participation from existing investors Susquehanna Growth Equity and Citi Ventures, according to a news release from the company.

The company, which offices in West Houston, was founded in 2006 founded in 2006 and employs more than 1,000 people in North America, Europe, and Asia. In November, HighRadius opened an office in Amsterdam. According to the news release, the company will use the funds to further expand its global footprint.

Read the full story here.

Proeza Ventures

Auto Driving Smart Car image

A new venture capital fund based in Houston and Monterrey, Mexico, has raised $50 million to back mobility startups. Hiroshi Watanabe/Getty Images

New fund Proeza Ventures, which is based in Houston and Monterrey, Mexico, reportedly closed its first fund Proeza Ventures I at $50 million. The fund is backed by Grupo Proeza, a Mexican portfolio management company with two global platforms operating in the mobility and agroindustry sectors, according to the fund's website.

With the fund's money, Proenza Ventures will invest in 12 to 15 early or growth-stage startups with solutions or new technology within industrial, smart components, new vehicles, MaaS, and digital data services.

Read the full story here.

Ambyint

oil and gas

Ambyint, which has offices in Calgary and Houston, has secured funding from Houston venture capital firms. Getty Images

Canada-based Ambyint, which has an office in Houston, has closed its $15 million series B funding. Houston-based Cottonwood Venture Partners led the round, and Houston-based Mercury Fund also contributed — as did Ambyint's management team, according to a news release.

The money will be used to grow both its Houston and Calgary, Alberta, offices and expand its suite of software solutions for wells and artificial lift systems. Ambyint's technology pairs artificial intelligence with advanced physics and subject matter expertise to automate processes on across all well types and artificial lift systems.

Read the full story here.

vChain Inc.

Houston-based vChain, creator of CodeNotary, has raised $7 million in a series A financing round. Pexels

Houston-based vChain, which created the CodeNotary Open Source code trust solution, has raised $7 million in a series A funding round. Paris-based Elaia Partners led the investment round, and other contributors include Zug, Switzerland-based Bluwat and Seattle-based Acequia Capital.

The software tool, which is used to ensure code is securely transmitted throughout the entire development to production process, has several platform integrations and works with languages such as JavaScript, Python, Go, Java, and more.

Read the full story here.

Vivante Health

good intestine health intestine Food for bowel Health

Vivante Health, which uses technology and at-home testing to help users treat chronic digestive health issues, has raised $5.8 million. Getty Images

Vivante Health raised $5.8 million in a series A1 round, according to a news release. The round was led by California-based Lifeforce Capital and Athens, Greece-based Big Pi Ventures. Additionally, NFP Ventures, FCA Venture Partners, and Longmont Capital contributed to the round.

With the fresh funds, Vivante will continue to develop its GI health platform, GIThrive. The digital tool has an at-home microbiome test kit for users, as well as a breath tester that monitors food sensitivities. GIThrive also connects users to on-demand support from nutritionists and experts on the GIThrive app.

Read the full story here.

Hitched Inc.

Houston-based Hitched has dug up new investment money from a local private equity firm. Pexels

Hitched Inc. raised $5.5 million in its series A funding led by Houston-based Cottonwood Venture Partners, a growth equity firm that focuses on digital tech solutions in the energy industry.

The company, which was founded in 2018, coordinates the rentals — from hosting and chartering to managing them — all on one centralized platform. Hitched has a catalogue of equipment from generators and cranes to light towers, pumps to forklifts, and the site lists out the cost per day of each piece of machinery.

Read the full story here.

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Building Houston

 
 

No matter what stage your company is in, here's what you need to know about navigating a communications strategy. Photo via Getty Images

The significance of effective communication and its contribution to a company’s success are points regularly stressed by conference panelists and forum speakers. Yet for many founders it’s advice that fuels frustration for how to make communications a priority with a lack of understanding of the practice.

This article combines insights from investors, customers, advisers, and founders, with actionable recommendations that benefit both startups and growth stage leaders who are scaling the impact of their companies.

Why marketing communications is important

Marketing communications combines the use of messages and a broad spectrum of tools to communicate with target audiences in attracting customers, cultivating relationships, acquiring funding, increasing visibility, and growing influence.

To define marketing communications in singular terms limits its impact. “For some, communications is simply a pretty graphic,” says Adam Lipman, managing partner of Ecliptic Capital, “and they don’t think about the importance of communications that speak to the needs of their key audiences in language that will resonate with them.”

It can be tempting to jump straight to producing tools that you can touch, hear and see, but applying thoughtful strategies first has everything to do with how successful those tools will be.

A dangerous misconception

Regardless of how innovative your device, therapeutic or service, there is always competition, including the option of customers doing nothing. “We call it the good enough problem,” says Lipman. “If what’s currently being done is considered good enough, what is the incentive to improve or change it with your idea?”

Comparison is a common method for comprehending a disruptor’s unprecedented concept. Your wearable device that does something no one else’s does will, at the very least, be categorized and compared to other wearables. Your innovative concept for improving cardiovascular patient outcomes will be compared within the broad category of cardiovascular care. To believe there’s no competition to challenge your success, regardless of how unique, is a false sense of security that requires proactive messaging.

“If you don’t define your brand, someone else is going to do it for you, and it may not be what you want,” warns Tatiana Fofanova, co-founder and CEO of Koda Health.

The analogy we use when formulating messaging for our clients is to define their “seat at the table” so that no matter who or how many competitors are seated alongside them, the advantage their solution offers and the beneficial role they fill within the ecosystem is very clear.

Strategically connecting the dots

Distinguishing your company from its competition and motivating action on the part of investors or customers requires communication strategies that connect all the dots.

“Many entrepreneurs think their technology will sell itself,” says Michelle Stansbury, vice president of innovation and IT applications for Houston Methodist. “But for me to understand what we gain by utilizing their product, I want to know what problem are they solving. Does their product increase efficiencies, improve patient satisfaction, or answer a financial problem? Answering these questions is fundamental.”

In addition to messaging that clearly defines how your company is uniquely capable of delivering valuable solutions, it’s important to apply strategies for speaking your audience’s language and identifying the pain points you are capable of relieving. It also requires considering the perspective and experience of an audience’s different members. For instance, if presenting to an investor who is also a neurologist, sharing scientific data will be appreciated. For others, the why and how of what you offer may be better told through story.

The homework you do to fully understand your audience’s needs will not only produce beneficial insights but also demonstrate a level of commitment that can impress influencers and potential funders.

“I’m drawn to founders who want to walk in their customer’s shoes. They are generally deeply empathetic because they've spent time literally walking the halls with them and sat in the chairs next to them,” says John “JR” Reale, venture lead for the Texas Medical Center Venture Fund. “It’s very endearing to see a founder who wants to understand and continue to learn from who they want to serve.”

Actionable advice

Just as marketing communications is defined by multiple components, there are several actionable strategies for getting past the understanding phase. Here are three key recommendations to implement, whether a startup with limited resources or a company experiencing accelerated growth.

As a startup

  • Develop brand messaging that distinguishes your solutions from the competition and captures the compelling purpose and passion of your company’s mission.
  • Establish a working relationship with professional communicators. Though your budget is small, it’s a great way to develop trust and familiarity within the parameters of a single project for when greater resources allow expanded assistance in the future.
  • Identify each of your key audiences, including strategic partners, community influencers, and end users, as well as potential investors and other funding sources. The list may be daunting, so rank contacts in each category and unleash your entrepreneurial curiosity to research their needs and priorities.

The growth stage company

  • Invest in comprehensive communication consultation to elevate your startup marketing communications to the 2.0 level of expected sophistication. This is when the working relationship seeds you planted with a professional communicator really pays off. Trust has been established and there is a fundamental understanding for who you are and why it matters.
  • Just as your business plan provides vital direction, a strategic communications plan functions as an essential blueprint for achieving your goals, including connecting with target audiences, increasing visibility, marketing your company’s services or products, and strengthening your bottom line. Strategies should be tailored to your organization’s specific needs and identify the tools necessary for achieving success.
  • Prioritize and produce marketing tools identified in your plan that promote the company’s impact and build on the brand reputation it has achieved.

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Kelli Newman is president of the Houston-based communication strategies firm, Newman & Newman Inc., where she leads a talented team of marketing professionals advancing the success of their purpose-driven clients.

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