Topl the world

Houston blockchain startup closes oversubscribed seed round of funding with local investors

Houston-based Topl has raised over $700,000 in its seed round. Getty Images

Kim Raath is pretty proud of her company right about now. Not only is she proud that her startup, Topl, a blockchain network with applications across industries, closed a 20 percent oversubscribed $700,000 seed round, but because she did it in a way that was directly in line with her company's values.

"Every investor that is invested now has focused on both the purpose and the profit, and I'm big on that," Raath, president and co-founder of Topl, says.

Houston-based Topl was created by a few Rice University graduates and doctoral students — Raath, Chief Technology Officer James Aman, and CEO Chris Georgen. The founders wanted to create a way to track impact in various industries, such as carbon footprints in oil and gas or fair wages for farmers in agriculture.

The team has built six blockchain platforms that operate on the Topl network — two are live now, and four will go live later this year. The platforms are focused on four different areas: agriculture (tracking food products from the farm to the shelves), mining (diamonds, for instance), sustainability and impact (tracking a program to see how it succeeds), and carbon credits and renewables within the energy industry.

"It's a validation time for us," Raath tells InnovationMap. "With two platforms already live and collecting transaction fees, we are now at a point where there are actual blockchain transactions happening on our network."

The fact that Topl's technology is already up and running is rare. For this reason, Raath says she has to focus a lot on educating investors, clients, and the rest of the community — something that's really important to her.

"In the blockchain space, there are not a lot of real applications live anywhere," Raath says. "A lot of people are selling ideas that can be built on blockchains, but have not executed yet."

Topl partnered with European NGO Fairfood to create an agricultural blockchain platform that currently is live. Shoppers in the Netherlands can buy a pack of nutmeg and track the product's progress from the farmer who grew and sold the spice. The other already launched platform is focused on sustainability. Topl worked with the Texas Coastal Exchange to create a carbon credit marketplace that can sell carbon offsets generated through the natural carbon sequestration activities of land the organization holds along the Texas coast.

"For us this round is taking these four spaces and validating ourselves, proving out volume, the blockchain's ability, and then, the big thing is, to build out our next version of our blockchain," Raath says.

Raath says the fundraising round was different from what she expected, but she's excited about her investors. Seventy percent of the round was raised by Houstonians, and 40 percent of the investors were women, she says. Topl also had investor interest across industries and backgrounds — from Rice University professors to former banking execs.

The round doesn't technically have a lead investor, but Samantha Lewis, director at the GOOSE Society of Texas, led a syndicate of investors that made up more than 40 percent of Topl's round. Lewis says the round was too early stage for something GOOSE investors would typically contribute to, but she believes in the company so much that she worked nights and weekends to accomplish some of the things a lead investor would do during a raise.

"Since this was their first big round that they raised, I stepped in to help advise them — thinking about the terms, strategic investors, how to pitch to different people, if they needed to oversubscribe, and little details like that," Lewis says. "Through working with them in this way, I was doing diligence with them, and I got really excited about it."

Lewis, who volunteers a lot within the Rice network, met Raath through Georgen and the two hit it off. Lewis was then able to bring in investors from her network to contribute under her syndicate.

This passionate group of value-add investors who are personally committed to the company is what makes this seed round different for Raath. Their commitment is encouraging to her.

"I 100 percent believe that the investors in this round will not allow Topl to fail," Raath says.

With the money, Topl will be able to grow its platforms, provide better product features, and increase marketing efforts. Topl's customers are drawn to the technology because of the business efficiency the blockchain adds to their supply chain, but they are also excited about how having this technology differentiates them from their competition. Raath says she's interested in growing Topl's ability to do joint marketing campaigns with their customers.

This type of promotion leads to a growing clientbase, and Raath says she sees an overwhelming interest from potential clients. Not only is Topl creating a series of platforms in various industries, but the company itself is connecting other companies through their clients.

"Topl is not just a technology," Raath says, "it's an ecosystem."

Trending News

Building Houston

 
 

These three startups walked away from a pitch competition with thousands of dollars in equity-free prizes. Photo courtesy of Rice University

Three startups founded by Rice University graduates have won investment prizes at an annual pitch competition.

The annual H. Albert Napier Rice Launch Challenge, or NRLC, welcomed a panel of judges to hear from six alumni-founded startups in the finals last week. The prizes on the line totaled $65,000 in equity-free funding. The event, which is separate from the student version of the competition, is hosted by Rice’s Liu Idea Lab for Innovation and Entrepreneurship.

The big winner of the 2022 competition was Rhythio Medical, a preventative heart arrhythmias treatment startup. The company won first place, which included $30,000 in equity-free funding, as well as the Audience Choice Award that came with $1,500.

Taking second place, Synopic, which facilitates faster and more accurate surgical procedures through improved endoscopic vision technology, won $20,000 in equity-free funding. Lastly, Green Room, a platform that streamlines taxes and payments for touring artists, clinched third place and $15,000.

The event, named for Rice professor emeritus and entrepreneurship program founder H. Albert Napier, was sponsored by Mercury Fund, T-Minus Solutions and Chevron Technology Ventures. This year's finalists were selected by judges made up of Rice alumni. Three judges — Danielle Conkling, director at Silicon Valley Bank, Paul Manwell, senior director at Google, and Joanna Nathan, manager of new ventures at Johnson & Johnson — listened to and evaluated each company's five-minute pitch and followed up with questions.

Rhythio Medical was founded by CEO Kunal Shah, class of 2022, and Savannah Esteve, who also serves as head of product. The technology includes a surgically injected wire that makes an irregular heart work like a healthy one. It works alongside a traditional implantable cardioverter defibrillator, however, the wire but works to prevent arrhythmias, while ICDs treat arrhythmias with a painful shock to the patient’s heart. The company lists the Texas Heart Institute and the University of Texas at Austin as its research partners.

Trending News