Cha-cha-changes

Station Houston announces its transition into becoming a nonprofit

Station Houston's stakeholders voted in favor of the organization transitioning to a nonprofit. Station Houston/Facebook

Houston's startup scene just got a little more accessible. Station Houston's stakeholders voted to transition the organization to nonprofit status from the C-corp status it currently holds.

The status change is effective January 1, 2019, for the acceleration hub, which is based in downtown Houston. The news was announced to its members in an email sent on December 13.

"Following in the footsteps of successful hubs such as 1871 in Chicago or Mass Challenge in Boston, we see that non-profit status allows these organizations to stay true to their missions while providing best-in-class services to members," reads the email. "We are excited to announce that this week, all Station stakeholders voted in favor of the conversion to non-profit status."

Station's CEO, Gabriella Rowe, tells InnovationMap that the announcement is part of a larger change for the organization, which will announce its plans for Station 3.0 in January.

"This opens up so many more funding and programing opportunities for us, so that we can charge our entrepreneurs and startups as little as possible and give them all the depth of services and support," Rowe says. "That's really what it comes down to."

Station Houston is among the partners — along with the Rice Alliance for Technology and Entrepreneurship — for the Houston innovation district that plans to open in the rehabilitated Sears building in Midtown. The space plans to open in 2020 and hasn't yet broken ground. Rowe discussed Station 3.0 and the district in an interview with InnovationMap in November.

"We're going to be doing a huge launch of Station 3.0 in January," she said in the interview. "It will really allow us to tell the world not just what we're going to be for the next three months, but what we're going to be over the next three years."

Station Houston recently hosted the Texas Digital Summit with Rice University and the Rice Alliance. The all-day summit consisted of panel discussions, keynote speakers, and a startup pitch of 39 companies. At the conclusion of the day, Rowe and Brad Burke from Rice announced 10 of the most promising startups from the summit. You can read about those companies here.

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Originally expected to raise $150 million, Mercury's latest fund is the largest raised to date. Photo via mercuryfund.com

A Houston venture capital firm has announce big news of its latest fund.

Mercury, founded in 2005 to invest in startups not based in major tech hubs on either coast, closed its latest fund, Mercury Fund V, at an oversubscribed amount of $160 million. Originally expected to raise $150 million, Fund V is the largest fund Mercury has raised to date.

“We are pleased by the substantial support we received for Fund V from both new and existing investors and thank them for placing their confidence in Mercury,” Blair Garrou, co-founder and managing director of Mercury Fund, says in a news release. “Their support is testament to the strength of our team, proven investment strategy, and the compelling opportunities for innovation that exist in cities across America.”

The fund's limited partners include new and existing investors, including endowments at universities, foundations, and family offices. Mercury reports that several of these LPs are based in the central region of the United States where Mercury invests. California law firm Gunderson Dettmer was the fund formation counsel for Mercury.

Fresh closed, Fund V has already made investments in several companies, including:

  • Houston-based RepeatMD, a patient engagement and fintech platform for medical professionals with non-insurance reimbursed services and products
  • Houston and Cheyenne Wyoming-based financial infrastructure tech platform Brassica, which raised its $8 million seed round in April
  • Polco, a Madison, Wisconsin-based polling platform for local governments, school districts, law enforcement, and state agencies
  • Chicago-based MSPbots, a AI-powered process automation platform for small and mid-sized managed service providers

Mercury's investment model is described as "operationally-focused," and the firm works to provide its portfolio companies with the resources needed to grow rapidly and sustainably. Since 2013, the fund has contributed to creating more than $9 billion of enterprise value across its portfolio of over 50 companies.

“Over the past few years there has been a tremendous migration of talent, wealth and know-how to non-coastal venture markets and this surge of economic activity has further accelerated the creation of extraordinary new companies and technology," says Garrou. "As the first venture capital firm to have recognized the attractiveness of these incredible regions a dozen years ago, we are excited to continue sourcing new opportunities to back founders and help these cities continue to grow and thrive.”

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