Money moves

Houston Exponential's ambitious venture fund closes first round with $25 million

Oct 16, 2018, 2:42 pm

Nine companies committed to Houston Exponential's first round of funding. Shobeir Ansar/Getty Images

Houston Exponential closed the first round of funding for its fund of funds with $25 million in commitments from nine companies. The money will go to non-Houston venture capitalists to invest back into Houston startups.

HX Venture Fund's first-round partners include: Insperity, Chevron, Shell, Quanta Services, Westlake Chemical, The Plank Companies, PROS, HEB, and Camden.

Kingwood-based Insperity was the anchor investor, committing to $5 million last October, according to the release. The company also provided an undisclosed amount of resources support the operations of the fund as it launched.

"This is another transformational moment for Houston," says Gina Luna, chair of Houston Exponential, in the release. "From day one at Houston Exponential, we have been executing a plan to accelerate the growth of the ecosystem, including connecting Houston startups with the capital they need to grow their businesses. This is a significant, tangible milestone. Houston's leading companies have stepped up in a big way to make this happen, and this is a clear signal that Houston is committed to success."

Houston-based venture capital firm Mercury Fund's co-founder and managing director, Blair Garrou, chaired the fund's advisory board. He's also a board member for HX.

The fund of funds won't donate to Houston organizations directly, Garrou says in a statement. The fund's organizers had a different approach to growing funds in Houston's startup space.

"The HX Venture Fund will invest in venture capital funds outside of Houston – generating investment and interest in the region while increasing the investable capital available to Houston-based startups," says Garrou. "The HX Venture Fund is built upon a proven model that provides multiple benefits to its investors."

The benefitting venture capital funds haven't yet been named.

HX modeled the fund after the Renaissance Venture Capital Fund in Michigan, from which 10 outside venture capital firms benefitted —Mercury Fund was one of the 10. It was Garrou who led the movement to get Renaissance Fund's CEO and Fund Manager, Chris Rizik, as a part of the HX Venture Fund from the start as a member of the investment committee.

The Michigan fund launched 9 years ago and exceeded all expectations. For ever dollar Rizik and his team invested, $17 came back into the Michigan area, he told the Houston Business Journal. He says Houston has the same potential.

"I've spoken to many cities about Renaissance's fund of funds model and the impact it has had on Michigan," says Rizik in the release. "Houston has leaned into this model and it is impressive what they have been able to accomplish in a short time. It is a testament to the commitment of Houston's business and tech leaders to growing the ecosystem. It's really exciting to see."

In October 2017, Houston Exponential was launched by Mayor Sylvester Turner's Innovation and Technology Task Force in collaboration with the Greater Houston Partnership's Innovation Round Table and the Houston Technology Center. HX's launch included three main goals, according to the release: "make Houston a top 10 innovation ecosystem, generate $2 billion in venture capital annually and create 10,000 new technology jobs a year by 2022."

Building Houston

Where to be

10+ can't-miss Houston business and innovation events for June

Check out these conferences, pitch competitions, networking, and more in the month of June. Photo via Getty Images

It's time to look at what's on the agenda for June for Houston innovators — from pitch competitions to networking events.

Here's a roundup of events not to miss this month. Mark your calendars and register accordingly.

Note: This post might be updated to add more events.

June 2 — Boost Your Brand's Online Visibility with a Book

Discover the untapped potential of self-publishing a book to establish your expertise, increase your visibility, and build your network. If you have ever considered publishing a book someday, this event is for you.

The event is Friday, June 2, from 8:30 to 10:30 am, at Impact HUB (Amegy Building - 1801 Main St 10th floor.) Click here to register.

June 2 — Best AI Tools for Business Innovation and Growth

This informative workshop is aimed at introducing participants to the latest AI tools available for businesses to innovate and grow. The interactive sessions will provide practical insights and expert advice from speakers who are experts in the field of AI. Participants will learn about the various AI tools that can be used for businesses, including machine learning, natural language processing, computer vision, and more.

The event is Friday, June 2, from 10 to 11 am, online. Click here to register.

June 7-9 — The Future of Global Energy Conference

To highlight Houston's role in the global energy transition, the Greater Houston Partnership, Houston Energy Transition Initiative, and Center for Houston's Future will host a dynamic three-day conference focusing on the role community engagement, innovation and technology, workforce, and funding play in implementing Houston's energy transition strategy.

The event is Wednesday, June 7, to Friday, June 9. The event is hybrid at various locations in Houston. Click here to register.

June 8 — Out in Tech Houston | Monthly Mixer

Out in Tech provides an inclusive networking space for LGBTQ+ people and allies working in tech. Join this relaxed, social-mixer event, hosted on the second Thursday of every month.

The event is Thursday, June 8, at 6:30 to 8:30 pm at Avant Garden. Click here to register.

June 9 — The Future of Global Energy Conference: Luncheon

The Future of Global Energy conference concludes with a gathering of experts and thought leaders, exploring the roadmap for Houston to lead the transition to an energy-abundant, low-carbon future. Panelists include:

Jim Gable, President, Chevron Technology Ventures
John Hall, President & CEO, Houston Advanced Research Center (HARC)
Dr. Ramanan Krishnamoorti, Chief Energy Officer, University of Houston
MODERATOR: Jane Stricker, Senior Vice President, Energy Transition & Executive Director, Houston Energy Transition Initiative, Greater Houston Partnership

The event is Friday, June 9, from 10 am to 3 pm, at Hilton Americas. Click here to register.

June 9-10 — Mission Innovate - Reimagining Space Technology to Solve Today’s Challenges

This summer, innovators from around the greater Houston area will convene for a two-day event to innovate, disrupt, and help design innovative solutions that can address gaps in numerous key areas. Entrepreneurs will work with licensable intellectual property from NASA’s IP portfolio to solve some of the largest problems facing the industry. Experienced and first-time founders will form teams, ideate, and pitch their ideas to renown technology entrepreneurs, including members of the innovation teams at NASA. As part of the event, teams will be taught critical startup methodologies, advised by experienced business leaders, and network with an entire community that dreams of shaping key areas in emerging technology.

The event is Thursday, June 9, to Friday, June 10, at the Cannon West Houston. Click here to register.

June 12-14 — Energy Drone & Robotics Summit

The most influential gathering of over 1,500 industrial, energy, and engineering leaders from around the globe where the key challenges and solutions are addressed for operating robotics, drones, satellites, and remote systems successfully and managing AI/data, from the stars to the sea floor.

The event is Monday, June 12, to Wednesday, June 14, at Woodlands Waterway Marriott & Convention Center. Click here to register.

June 13 — Investor Studio Series: VC Due Diligence Best Practices

During this event, Golden Section, a venture capital fund and founders studio obsessed with B2B SaaS product development, will discuss how VCs approach investing and conduct due diligence, and why this matters for founders. The presentation will cover:

Market changes that effect how VCs approach investing
What founders need to prepare for this new environment
How Golden Section approaches due diligence

The event is Tuesday, June 13, from 4 to 6 pm, at the Ion. Click here to register.

June 13 — Using ChatGPT to Grow Your Business

Learn how to harness the power of artificial intelligence and use ChatGPT to not only stay ahead of the game but to redefine it. Whether it's handling queries, managing customer relationships, or generating leads, AI can automate and enhance many aspects of your work. This session will guide attendees through the fascinating world of AI and show them how to leverage it for maximum results.

The event is Tuesday, June 13, from 11 am to 1 pm, at Amcap Mortgage. Click here to register.

June 15 — Female Founders and Funders Meetup

Monthly, every third Thursday, Softeq Venture Studio and Sesh Coworking invite all rockstar female founders and funders in the Houston area to network and empower each other.

The event is Thursday, June 15, from 9 to 10 am, at Sesh Coworking. Click here to register.

June 20 — Co-Creating the Future: An African Startup Symposium on Collaboration

This physical symposium explores opportunities for cross-border entrepreneurial collaboration between the US/Houston and Africa. From Idea to Impact, delving into the African startup ecosystem, highlighting growth and potential for cross-border collaboration, key sectors driving innovation and growth, and legal, regulatory, and cultural considerations and challenges for cross-border collaborations. Startups and investment opportunities will be showcased.

The Agenda:

6:00 pm - 6:10 pm - Introduction to the event and The Beta Collective
6:15 pm - 6:20 pm - Sponsors Highlight
6:20 pm - 6:35 pm - Startup showcase
6:35 pm - 6:40 pm - Panel Introduction
6:40 pm- 7:30 pm - Panel
7:30 - 7:50 pm - Q&A
7:50 - 8:00 pm- Closing and Thanks
8:00 - 8:30 pm - Strategic Networking

The event is Tuesday, June 20, from 6 to 8:30 pm, at The Ion. Click to register.

June 22 — Ultrasound. Integrated. Everywhere.

Pump & Pipes is hosting an event focused on thin-film ultrasound technologies from energy applications into aerospace, health, and medtech sectors.

In collaboration with NASA Tech Talks, and the Mingle Monday Health & MedTech series at The Ion, join Pumps & Pipes as they venture into a discussion on the use of ultrasound technologies from both terrestrial and space medicine perspectives.

The event is Thursday, June 22, from 6 to 9 pm, at the Ion. Click here to register.

June 28 — June Transition On Tap

Transition On Tap is Greentown Labs' monthly networking event devoted to fostering conversations and connections among the climate and energy transition ecosystem in Houston and beyond. Entrepreneurs, investors, students, and friends of climatetech are invited to attend, meet colleagues, discuss solutions, and engage with our growing community. If you’re looking for a job in climatetech or energy, trying to expand your network, or perhaps thinking about starting your own energy-related company, this is the event for you.

The event is Wednesday, June 28, from 5:30 to 7:30 pm, at the Ion. Click here to register.

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