Money moves

Houston sees significant jump in annual venture capital investments, according to new data

The city of Houston still lags behind Dallas and Austin when it comes to venture capital funds raised but did outshine compared to its 2018 numbers. Getty Images

While Houston fell behind Austin and Dallas when it came to amount of venture capital raised last year, the Bayou City still closed out 2018 with more funds raised than it reported in 2017, according to Crunchbase data.

Houston had a reported $372.8 million in investments in 77 known deals across 2018. In 2017, Houston had 95 deals reported but with a smaller total of funding dollars — $257.7 million — which gives Houston a 45 percent increase year over year.

Compared to other Texas metros, Houston still lags behind. Austin reported $1,285.5 million and Dallas companies had $601.8 million. These figures reflect only the reported deals to Crunchbase.

Photo via news.crunchbase.com

Even though 2018 overall shows Austin had a huge lead, in the third quarter of last year, Houston reported a similar amount of VC funds as Austin. In Q3, Houston startups pulled in $138.8 million — 39.2 percent of the state's entire VC funding — while Austin startups reported receiving $150.6 million — 42.6 percent of the funds, according to Crunchbase.

The fourth quarter was a slightly different story. Houston still edged out Dallas, but Austin took a significant lead. Houston had a reported $121.4 million from 11 reported VC deals, compared to Dallas' $101 million and Austin's $299.9 million. For Houston, the largest 2018 deal took place in Q4. Apex International, and oil and gas company, raised $75 million.

Austin-based Capital Factory's co-founder, Joshua Baer, tells Crunchbase that it will take some time for Houston's VC economy to catch up to Austin's, but that he doesn't think there's any reason it couldn't happen. Capital Factory, which has contributed to some Houston startups, recently announced it has preleased space in Houston-based The Cannon's new 120,000-square-foot space that's expected to deliver in spring.

Baer tells Crunchbase that Houston's biggest problem is access to venture capital — something that isn't rare of a problem at all. But Houston has a unique opportunity too.

"What Houston has that most places don't is a lot of corporate VCs," Baer says to Crunchbase. "Almost every energy company headquartered in Houston has a venture arm. They tend to fund companies that are Series B and later… so not the seed-stage stuff that is so popular in Austin and they do it all over the world, not just in Houston."

Five different Houston startups closed out 2018 with some funds. Here's how they plan to spend their investments.

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Building Houston

 
 

From enlightening talks to anniversary celebrations, here's where you need to be in August. Getty Images

This month, Houstonians have yet another good batch of in-person and online innovation events — from Zoom panels to conferences — and you and your tech network need to know about them.

Here's a roundup of virtual events not to miss this month — like demo days, workshops, conventions, and more.

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

August 4 — Bayou Startup Showcase

Join Rice University and the University of Houston to celebrate the launch of the newest startups from OwlSpark and RED Labs. The Eighth Annual Bayou Startup Showcase will have founders from Class 9 showcase their summer progress. Come listen to pitches, network and get a first look at Houston's newest startups.

The event is on Wednesday, August 4, at 6 pm. It's free and happening at The Cannon (1334 Brittmoore Rd). Click here to register.

August 5 — Ask-Me-Anything Event With Carin Luna-Ostaseski: Tackling Roadblocks as a Solopreneur

A Hello Alice alum and first-generation Cuban American, Carin Luna-Ostaseski has truly achieved the unexpected, launching her one-woman operation through crowdfunding and becoming one of the first Hispanic entrepreneurs in history to create a scotch whisky brand. During the virtual event, she'll answer all of your questions, offer tips on navigating uncharted territory in business, and share details on the newly launched Entrepreneurial Spirit Fund by SIA Scotch that's awarding $10,000 grants to small business owners of color.

The event is on Thursday, August 5, at 1:30 pm. It's free and happening online. Click here to register.

August 10 — FTE Show: Creating a Digitally Enabled Innovation Community that Works with Jon Lambert and Lawson Gow

The way entrepreneurial communities interact and collaborate today cannot keep pace with the ever increasing speed of innovation. What are best ways to leverage physical and virtual hub interactions to create a digitally enabled innovation community with that works? Join The Cannon Founder Lawson Gow and CEO Jon Lambert as they share specifics around what they are trying, where they are getting traction and where they are most challenged.

The event is on Tuesday, August 10, at noon. It's free and happening online. Click here to register.

August 10 — HealthTech Beyond Borders

This online event created to offer business opportunities and global collaboration focused on innovation and technology in medicine between companies in Chile and the United States. Join the International Summit to explore the future and impact of new technologies in the health sector.

The event is on Tuesday, August 10. It's free and happening online. Click here to register.

August 11 — Open Project Night: Building an Equitable, Inclusive and Resilient Houston

Impact Hub Houston is proud to bring you a monthly opportunity to come together to work on solutions for some of Houston's most pressing issues. Our city is full of changemakers across all ages, cultures, skillsets, and industries. This is your chance to conned and collaborate for the greater good.

The event is on Wednesday, August 11, at 5 pm. It's free and happening online. Click here to register.

August 11 — Women in AI USA: WaiACCELERATE 2021 Demo Day

Ethical leadership & business acceleration program, WaiACCELERAT USA, aims to bridge the gender gap in the industry and targets female innovators looking to start a business in the fields of AI, Machine Learning and Data Science. With the final Pitch Event "ACCELER-AI-TE!" organized in VR, we will celebrate 40+ impact and commercially-proof early-stage startups and their founders

The event is on Wednesday, August 11, at 6 pm. It's free and happening online. Click here to register.

August 12-13 — EVOLVE 2021: How AI is Transforming Industry

Join industry leaders from the world's largest and most innovative companies for this 2-day hybrid event featuring both technical and business presentations focused on the real-world value of Artificial Intelligence. Evolve will provide a unique, interactive experience where you will learn from and engage with thought leaders from across North America.

The event is on Thursday, August 12, to Friday, August 13. It's free and happening at Houston Marriott Sugar Land and online. Click here to register.

August 17 — Texas Startup Scene & Ask Me Anything with Wogbe Ofori

Are you an entrepreneur starting a new company? Recently moved your company to Texas? Want to find out how to connect with other entrepreneurs, mentors, and investors in the startup ecosystem? Join Capital Factory to hear an overview from experienced entrepreneurs, venture capitalists, investors, and community partners at Intro to Texas Startup Scene & Ask Me Anything. Get a chance to introduce yourself and ask any questions on entrepreneurship and other related topics.

The event is on Tuesday, August 17, at 2 pm. It's free and happening online Click here to register.

August 18 — Tips for Working with a Gen Z Intern

Ampersand CEO, Allie Danziger, will speak to business owners and founders on the benefits of hiring an intern for your growing business, and tips for managing a remote, or in person, intern. It has to be a lot more than just "getting coffee" in order to maximize the experience on both sides and Allie will talk through tips on clear communication, ideal assignments, best way to structure the relationship and more. She will answer attendees questions, live, and discuss real-life scenarios the aspiring professionals and business partners in Ampersand have faced.

The event is on Wednesday, August 18, at 11 am. It's free and happening at The Cannon (1334 Brittmoore Rd). Click here to register.

August 19 — LatinX in Tech presented by Accenture

Capital Factory is dedicated to increasing diversity in the tech community and making its co-working space an inclusive environment for people of all backgrounds and identities. Attendees can look forward to a keynote address from a serial entrepreneur or investor, insightful discussion sessions, a startup showcase pitch competition, and informative panels.

The event is on Thursday, August 19, at noon. It's free and happening online Click here to register.

August 25 — The Cannon + Dell Pitch Party

Calling all member startups that are fundraising or are planning to open a round in 2021. The Cannon has partnered with Dell to host a virtual Pitch Party. Prizes will include up to $10k in Dell Equipment and the opportunity to pitch in the winners round later this year. If you would like to learn more and be considered to pitch, please fill out the application here.

The event is on Wednesday, August 25, at noon. It's free and happening online. Click here to register.

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