a day in the life

Here's how a visiting venture capitalist explores Houston's startup ecosystem for the first time

Pat Matthews of Active Capital visited Houston with a collaboration with the HX Venture Fund. Photo courtesy of Active Capital

When Houston Exponential established the HX Venture Fund, the goal was to bring out-of-town capital and investors into the city of Houston. The fund of funds invests in a portfolio of venture capital funds with the hope that those funds find a way back into the Houston startup ecosystem.

After a little over a year, HXVF has invested in five funds: Boston-based .406 Ventures, Austin-based Next Coast Ventures, Boston-based OpenView Venture Partners, Washington D.C.-based Updata Partners, and Austin-based LiveOak Venture Partners.

The fund of funds is also regularly hosting those five funds — as well as a mix of potential portfolio fund members — in Houston for what the HXVF calls "immersion days" where the venture capitalists can meet local startups, innovation leaders, and even fellow investors that they could eventually co-invest with.

"The goals of these days are to have venture capitalists travel to Houston, meet with our entrepreneurs (and the startup development organizations like Station, Cannon and WeWork that support them), and provide both capital and expertise in company building to the tech companies," says Sandy Guitar Wallis, managing partner at HXVF. "The venture capitalists also meet with HX Venture Fund corporate LPs, who can be customers or acquirers of their portfolio companies."

Just this month alone, HXVF is hosting four funds — two from their portfolio and two that they haven't yet invested in. San Antonio-based Active Capital, which has raised a $21 million fund, is among the visiting VCs this month. The fund's founder, Pat Matthews, an entrepreneur turned venture capitalist, has shared his busiest day — February 5 — as well as his perspective on Houston innovation with InnovationMap.

A morning too busy for breakfast

After waking up at the Hotel Derek, Matthews starts his second day in Houston by taking a Lyft to the Greater Houston Partnership for what he believes to be a breakfast meeting with Wallis and Guillermo Borda of HXVF, but the group has too much to discuss that a meal falls by the wayside.

Before this trip, Matthews hasn't visited Houston in a professional capacity. While Active Capital is based just down I10 in San Antonio, the firm's investments are split almost in half by deals done in Texas versus the rest of the world. Active Capital focuses on B2B SaaS investments — usually leading — in seed or series A rounds.

Matthews has called Texas home for around a decade. He founded an email marketing startup in Virginia, which was acquired by San Antonio-based Rackspace. He relocated to join Rackspace and worked on growing the organization for six years before creating Active Capital.

Following the meeting — still unfed, Matthews meets up with Serafina Lalany from Houston Exponential to carpool to The Cannon on the west side of town.

Loading up on carbs and fireside chats

Matthews forgoes his usual carb aversion to eat slices of Domino's pizza at The Cannon before beginning his first of three fireside chats with Houston innovators. Patrick Schneidau, CEO of Truss, leads the conversation at The Cannon. (Schneidau is a board member of InnovationMap's.) After the chat, Matthews has a meeting with a startup before heading back into town.

With one fireside chat down, Matthews heads into his second one of the day at Station Houston with Joe Alapat, founder of Liongard. Matthews observes that each of the entrepreneurs who interviewed him had great questions, and seemed to be far along with their companies. Meanwhile, any of the people he met before or after the chat seemed to be at a much earlier stage in their startup journey.

The last fireside chat was hosted by Rakesh Agrawal of Snapstream at WeWork's Jones Building location. Matthews and Agrawal attempted to set up a Facebook livestream for the conversation, but an issue with the technology wouldn't allow for the stream.

An evening of good food and great mentorship

With meetings and fireside chats done, Matthews heads straight to a dinner with Blair Garrou, founder and managing director of Mercury Fund. The two venture capitalists dine at Eunice and split several appetizers and a bottle of wine while discussing their own recent investments and interests. Matthews, who met Garrou in 2014, thinks of him as a great mentor in venture capital.

Matthews headed back to the hotel after dinner and crashes hard after the long day. He would head back to San Antonio on a Vonlane bus — he gets a lot of work done on his trips — the next day.

What's next for Active Capital and Houston?

Matthews says he left Houston with an overall positive opinion of the city, and says it's similar to other Texas cities, aside from Austin, in its startup presence and capacity. While he assumed he'd meet energy and space startups, he realized Houston had a lot more going on than that.

"It definitely seemed like there was a lot of passion and a lot of hustle," Matthews says. "And it seems like the city is really working to support and cultivate that and keep it in Houston. I was inspired."

Throughout the visit, Matthews handed out his business card and some conversations have developed from those connections, he says. Another representative from Active Capital who is focused on sourcing deals with startups will visit next, and Matthews says he also thinks that he'll return to Houston to continue conversations he's been having, including some with other investors.

"I could definitely see doing deals in Houston," Matthews tells InnovationMap.

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Building Houston

 
 

This week's Houston innovators to know include Liongard CEO Joe Alapat, Church Space Founder Day Edwards, and PDR Principal Larry Lander. Photos courtesy

As Houston transitions into summer, the city's tech and innovation ecosystem enters a new season — but with the same level of entrepreneurialism and can-do spirit.

This week's innovators to know includes a Houston tech founder fresh off fundraising, an architect with the future of the workplace, and a startup leader with a way to digitally connect churches to their congregations.

Joe Alapat, CEO and co-founder of Liongard

Courtesy of Liongard

After raising a $17 million round for his startup, Joe Alapat, CEO of Liongard, joined the Houston Innovators Podcast to discuss fundraising during a pandemic and how he's seen the Houston innovation ecosystem grow.

In the episode, Alapat also shares his advice for Houston startups looking to tap into the Houston innovation ecosystem — something he's watched grow over the past five years. Now, he says, when it comes to new startups in Houston, "the waves are hitting the shore."

"Houston has always been an entrepreneurial city, and this is just that next stage," Alapat says on the episode. "For me, it's the technology side that excites me even more to see technology companies really succeeding." Listen to the episode and read more.

Day Edwards, founder and CEO of Church Space

Photo courtesy of Church Space

Large gathering places have been shut down for months at this point, and that includes places of worship. Houston entrepreneur Day Edwards, founder and CEO of Church Space, usually focuses on connection organizations to spaces for worship or events. But, she is now focused on getting services online for congregations to connect with.

"It felt like the perfect opportunity to give churches a way to reach more people during the pandemic," says Edwards. "This would create more impact than anything we could possibly offer at this time." Read more.

Larry Lander, principal at PDR

Photo courtesy of PDR

While much of the country has been working from home for weeks, Larry Lander opines that this has made physical office space more important than ever.

"As a place to provide a technology offering we don't enjoy at our kitchen table, as a place to better support small group work beyond the tiny real estate of our laptop screens, and as a place that physically represents what our organizations are truly all about," he writes in a guest column for InnovationMap. The role of the workplace has never been more critical to business success." Read more.

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