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Report finds Houston venture capital firm has made the most Texas deals since 2010

Texas venture capital deals had its first spike in volume last year since 2013. Getty Images

When it comes to tracking venture capital deals coming out of Texas since 2010, a Houston fund tops the list — but just barely. Houston Angel Network edged out Austin-based Central Texas Angel Network by one deal.

The report by PitchBook counted deals from 2010 up to March 4 that were made with Texas companies. Ten VC funds were listed and, aside from HAN, Mercury Fund was the only other Houston VC. The other eight funds are located central Texas — with the exception of Right Side Capital Management, which has invested in 45 Texas companies since 2010.

"Texas is currently in a transition powered by high-tech investments that lie in contrast to the slow-paced cattle ranches spread throughout the rural areas of the country's 28th state," the report states. "Partly as a result of the relatively new tech scene, Texas was home to three of the 10 fastest-growing cities in the United States in 2018, according to Forbes."

According to the data, VC funding had been on a downward trend since 2013, when the state raked in $2.83 billion in 536 deals. However, 2018 marked a turn for the state with $3.11 billion in 461 deals — a smaller deal count compared to 2013.

Despite this VC deal growth, compared to the rest of the country, Texas ranks fourth when it comes to VC investment market share. California holds over 52 percent of the market, New York has over 10 percent, and Massachusetts has almost 10 percent itself, per PitchBook data. Meanwhile, Texas reportedly holds only 3.43 percent of the market.

PitchBook also identified the top 10 VC deals investing in Texas companies closed since the beginning of 2018 — none of which were into Houston companies. The list's top three had nine-figure investments — Austin-based Bungalo with a $250 million Series A, Dallas-based Peloton Therapeutics with a $150 million Series E, and Richardson, Texas-based Hedera Hashgraph with a $101 million Seed round.

Graph via PitchBook

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Building Houston

 
 

This week's roundup of Houston innovators includes Thomas Vassiliades of BiVACOR, Katie Mehnert of ALLY Energy, and Don Whaley of OhmConnect Texas. Courtesy photos

Editor's note: In this week's roundup of Houston innovators to know — the first of this new year — I'm introducing you to three local innovators across industries — from health care innovation to energy — recently making headlines in Houston innovation.


Thomas Vassiliades, CEO of BiVACOR

BiVACOR named Thomas Vassiliades as CEO effective immediately. Photo courtesy of BiVACOR

Thomas Vassiliades has been named CEO of BiVACOR, and he replaces the company's founder, Daniel Timms, in the position. BiVACOR is on track to head toward human clinical trials and commercialization, and Vassiliades is tasked with leading the way.

Vassiliades has over 30 years of experience within the medical device industry as well as cardiothoracic surgery. He was most recently the general manager of the surgery and heart failure business at Abiomed and held several leadership roles at Medtronic. Dr. Vassiliades received his MD from the University of North Carolina, and his MBA was achieved with distinction at Emory University.

“I am excited and honored to join the BiVACOR team, working closely with Daniel and the entire team as we look forward to bringing this life-changing technology to the market,” says Dr. Vassiliades in the release. “Throughout my career, I’ve been guided by the goal of bringing innovative cardiovascular therapies to the market to improve patient care and outcomes – providing solutions for those that don’t have one. BiVACOR is uniquely well-positioned to provide long-term therapy for patients with severe biventricular heart failure.” Click here to read more.

Katie Mehnert, CEO and founder of ALLY Energy

Katie Mehnert joins the Houston Innovators Podcast to discuss the future of energy amid a pandemic, climate change, the Great Resignation, and more. Photo via Katie Mehnert

Katie Mehnert started ALLY Energy — originally founded as Pink Petro — to move forward DEI initiatives, and she says she started with building an audience first and foremost, but now the technology part of the platform has fallen into place too. Last summer, ALLY Energy acquired Clean Energy Social, which meant doubling its community while also onboarding new technology. On the episode, Mehnert reveals that this new website and platform is now up and running.

"We launched the integrated product a few weeks back," Mehnert says. "The whole goal was to move away from technology that wasn't serving us."

Now, moving into the new year, Mehnert is building the team the company needs. She says she hopes to grow ALLY from two employees to 10 by the end of the year and is looking for personnel within customer support, product developers, and sales and service. While ALLY is revenue generating, she also hopes to fundraise to further support scaling. Click here to read more.

Don Whaley, president at OhmConnect Texas

Texas is about a month away from the anniversary of Winter Storm Uri — would the state fair better if it saw a repeat in 2022? Photo courtesy

The state of Texas is about a month away from the one year anniversary of Winter Storm Uri — but is the state better prepared this winter season? Don Whaley, president at OhmConnect Texas, looked at where the state is now versus then in a guest column for InnovationMap.

"Governor Abbott has gone on record guaranteeing that the lights will stay on this winter, and I am inclined to agree. With the reinforcement of our fuel systems being mandated by the Railroad Commission, 2023 to 2025 should receive the same guarantee," he writes. "Beyond that, as the demand for electricity in Texas continues to grow, we will need to rely on the initiatives under consideration by the PUCT to attract investment and innovation in new, dispatchable generation and flexible demand solutions to ensure long-term stability in the ERCOT market.

Whaley has worked for over 40 years in the natural gas, electricity, and renewables industries, with specific experience in deregulated markets across the U.S. and Canada. He founded Direct Energy Texas and served as its president during the early years of deregulation. Click here to read more.

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