Houston-founded startup raises $1.1M seed to fuel growth in bioeconomy

fresh funding

Van Heron Labs, founded at TMC, raised a $1.1 million seed round led by FoodLabs. Photo via Getty Images

A biotech company that was founded at the Texas Medical Center in Houston has raised fresh funding to support its goal of innovating new technologies for a healthier humanity.

Van Heron Labs, based in Huntsville, Alabama, raised a $1.1 million seed round led by FoodLabs, a European investor and venture studio for food, health, and climate. The startup taps into genomics, bioinformatics, artificial intelligence, and nanotechnology to improve how cells are cultured and harnessed with the mission to address critical industrial and global challenges with biotechnology.

“Van Heron Labs looks forward to using the generous support and funding from FoodLabs to advance our goal of making biological innovation better, faster, and cheaper," Rebecca C. Vaught, founder and CEO of Van Heron Labs, says in a news release. "By fueling the new bio-economy, we feel that our customers can optimize their systems and bring technologies to overcome critical global challenges to market."

Van Heron Labs, which was founded by Vaught, Alec Santiago, and Nithin Parsan in February 2020, originally launched with its cell-focused platform to support COVID-19 pandemic response. The company's cell-based applications also include cancer therapeutics and food and materials production.

“We are excited to lead the funding round in Van Heron Labs, as we firmly believe that their innovative approach to optimizing cellular nutrition has the potential to revolutionize multiple industries, including biopharma, biomanufacturing, foodtech, and agriculture,” Julius Strauss, investor at FoodLabs, says. “We are excited to be partnering with Dr. Rebecca Vaught and her team as they continue to push the boundaries of innovation in the bio-economy.”

The funding will go toward supporting existing and new product lines.

Van Heron Labs' automated flagship platform uses bioinformatics and advanced AI tools to discover the optimal cellular fuel. This information can be used to personalize the customers’ culture media to provide more excellent quality, efficiency, and scalability, per the company.

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Formerly competitors and collaborators in the space race, Houston and Huntsville, Alabama, are now moving the needle on biotech. Getty Images

Houston and former space rival are advancing biotech startups

Guest Column

Before scientists flocked to Boston and Silicon Valley; a tech boom occured in the American south that served as a defining moment for the United States: the Space Race.

At the time, two cities were the epicenters of mankind's desire to elevate its existence into the stars. Astronauts controlled the path of rockets that were built in Huntsville, Alabama, while radioing back and forth with Mission Control in Houston, Texas.

Today, the two cities are still aligned, but the final frontier is closer to home. Houston and Huntsville are currently flourishing in the scope of biotechnology, using the innovative research of thousands of scientists, academics, and clinicians to further human knowledge

Houston is the home to the world's largest medical center — the Texas Medical Center, or TMC — and an impressive community developing cutting-edge companies ranging from med to biotech. However, Huntsville is hot on its heels.

Turning an infrastructure initially dedicated to aerospace and aeronautical innovation into an emerging bioscience hub, Huntsville boasts around 50 biotech companies and a genomic research institute. The ecosystem has the highest concentration of STEM workers per capita in the country and is rallied around a collaborative research environment that boasts an impressive tech portfolio, including resident companies like Blue Origin, Facebook, and Google, while still managing to embody southern hospitality.

Mirroring the concerted efforts of the past, my Houston-born startup, Van Heron Labs, has recently taken a leap of faith in moving much of their laboratory operations to Huntsville, while many core team members remain in Houston. Being frustrated with the options for available and affordable lab space in Houston, the completely bootstrapped Van Heron Labs decided to stretch one foot into Alabama while the other stays rooted in the TMC ecosystem.

One positive upside to the shift to remote work in light of the COVID-19 pandemic are new opportunities for company employees, investors, and mentors to be physically separated, while collaborating and retaining productivity. These new dynamics of distance have allowed Van Heron Labs to expand their technical operations while maintaining ties to Houston.

VHL has recently moved into the HudsonAlpha Institute for Biotechnology, where they continue to develop their technology surrounding improved culture media, which hasn't changed much since scientists saw the publication of the first Peanuts comic. Recently, VHL has established a collaborative partnership with fellow Huntsville biotech Foresight Biosciences, and the two will be exploring a wealth of industries together.

Despite the distance, VHL still continues heavy involvement in the Houston ecosystem. My co-founder, Alec Santiago, is the current Director of non-profit, Enventure, and uses his experiences of establishing a biotech startup to help prepare the students around him to do the same.

Additionally, VHL currently has 17 interns, including current and former University of Houston students, Rice University graduate students, and even a local physics PhD. VHL has also long been in talks with companies in TMC, where they have established connections dedicated to growth. Ultimately, they hope to bridge the two cities and help give each access to new ideas, resources, funding, and mentorship.

Too often, emerging biotech startups struggle to get off the ground, and a lack of capital limits what could grow to be great ideas. To foster the growth of innovators around the nation several cities are primed to step in and welcome researchers. Institutions within Alabama's biotech ecosystem are leading the movement.

For just $188 a month, biotech startup companies located at HudsonAlpha campus can enjoy their own office space, and access to tailored programming which includes commercial IP assessments, regular investor forums and pitch opportunities, membership in supporting bioscience organizations, discounted laboratory supplies, as well as help with public relations, human relations, finding mentors, capital, and legal help.

VHL has taken full advantage of these opportunities, while maintaining a presence in Houston, and urges others to do the same. The lifting of our nation's innovators as a whole is a positive movement, and one that can increase access to many bright minds. Just as in the space race, working together regardless of geography can offer unlimited potential and may even take us to an entirely new plane.

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Rebecca Vaught is the co-founder of Van Heron Labs.

Rebecca Vaught started her biotech company just ahead of COVID-19, but she shares on the Houston Innovators Podcast that it's meant more opportunities than challenges. Photo courtesy of Van Heron Labs

Entrepreneur hopes to bring microbiology into the future with her Houston-based, pandemic-founded startup

HOUSTON INNOVATORS PODCAST EPISODE 40

While startups everywhere are struggling to adapt in the tumultuous times of COVID-19, Rebecca Vaught and her company, having launched just ahead of the pandemic, don't actually know any other way of existing.

After watching some of her friends thrive in Houston's life science ecosystem, she knew Houston was the place she wanted to start the company that she'd been envisioning and plotting for years. She took a chance on the city, moved in, and began Enventure's Biodesign accelerator. The program shutdown as COVID-19 spread, much like other programs, but Vaught wasn't going to let that stop her momentum.

"A lot of people probably would have seen that as the stopping point but that was actually the beginning of the company," Vaught says on the Houston Innovators Podcast. "What it allowed us to do was actually establish the lab and do the hard work."

As Vaught says, the biotech company, Van Heron Labs, is what it is thanks to the pandemic — not just in spite of it.

"While it's been challenging, the pandemic — in a lot of ways — is the only thing we've ever known and it's a lot of reason why the company has taken off and been successful," Vaught says on the show.

She runs the company with co-founder Alec Santiago and a team of 17 interns — all located across the country. Vaught herself is currently residing in Huntsville, Alabama, after struggling to find lab space in Houston. However, the relocation has been a blessing in disguise.

"Both ecosystems are extremely unique and both bring something different to the table," she says. "My next mission, through my lived experience, is igniting or uniting the Houston and Huntsville biotech ecosystems."

On the episode, Vaught explains how the two cities — each representing key parts of space exploration history and burgeoning tech scene — complement each other. She also shares her plans for growth and the need to bring microbiology into the future.

Listen to the full interview below — or wherever you get your podcasts — and subscribe for weekly episodes.


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Rice University breaks ground on new innovation hub, The Arc

breaking ground

Construction is officially underway on Rice University's The Arc in Houston’s Ion District.

The university broke ground on the 200,000-square-foot research, corporate innovation and office building on Nov. 4. The facility will share a plaza with the existing Ion building, fostering collaboration within the innovation space, according to Rice.

“The Arc will bring Rice’s extraordinary research and talent and Houston’s impactful innovation ecosystem into even closer connection with the industries and innovators working to solve some of the world’s most consequential challenges,” Rice President Reginald DesRoches said in an announcement. “That constant exchange of ideas and expertise will help move discoveries more rapidly from the laboratory to real-world impact.”

Construction is scheduled to be completed by Q2 2028. Rice Real Estate Co. is developing the project, and Rice University will occupy about 80,000 square feet in the building (about 40 percent). Preleasing has begun, with floor plans ranging from 28,000 to 31,000 square feet.

The Arc will feature conference and meeting spaces, an amenity lounge, fitness center, outdoor plazas, underground parking, and on-site retail and dining, according to the release.

It aims to host tenants focused on artificial intelligence and machine learning, data science, robotics, quantum science and engineering and energy, including Rice's new AI Foundry.

Rice says the AI Foundry will be a space where university experts and partners can support organizations with AI challenges. Rice recently committed to hiring 75 new AI-focused faculty and announced plans to launch a new Master of Artificial Intelligence (MAI) next fall.

“The AI Foundry is exactly the kind of collaboration the Arc is designed to enable,” Amy Dittmar, the Howard R. Hughes Provost and executive vice president for academic affairs at Rice, added in the release. “By bringing Rice researchers together with industry partners in a shared environment, we can accelerate the movement of ideas from research into practical applications while helping organizations build the capabilities they need to succeed as AI continues to evolve.

Developers of The Arc are targeting LEED Gold certification by incorporating smart building automation and energy-saving features into the project's design. Rice first announced the project in September 2025.

Rendering courtesy Bogza

Houston battery tech startup FlowCellutions acquired by Katy energy co.

M&A

Katy-based TerraFlow Energy, an energy storage and infrastructure company, has acquired Houston-based battery technology startup FlowCellutions. Financial terms weren’t disclosed.

FlowCellutions still operates under its established name, but with the tagline “A TerraFlow Energy Company.” Becca Segel, founder and CEO of FlowCellutions, now runs the business as its president.

FlowCellutions specializes in electrochemical sensing, diagnostics, analytics, and testing that offer insights into battery chemistry, charging capabilities, and system performance.

“FlowCellutions has always been focused on developing better ways to understand what is happening inside a flow battery and using that information to improve how these systems perform,” Segal said in a press release. “Joining TerraFlow gives us the opportunity to apply that work at a much larger scale while continuing to build the capabilities and expertise that make FlowCellutions unique.”

The FlowCellutions platform supports data centers and other heavy users of power. It’s designed to help reduce operating costs, prevent failures and costly downtime, and extend battery lifetime from about seven years to more than 30 years.

Segel founded the company in 2022. A member of Greentown Labs, the company raised more than $2 million in non-dilutive funding and received $1.5 million in National Science Foundation funding earlier this year.

FlowCellutions is one of five finalists in the Energy Transition Business category of InnovationMap’s 2026 Houston Innovation Awards.

“FlowCellutions brings a depth of scientific and technical expertise that fits naturally with where TerraFlow is going,” Jon Parrella, CEO of TerraFlow, said in the release.

“As we move from developing these systems to deploying them at commercial scale, understanding performance at a deeper level matters,” he said. “Bringing FlowCellutions into TerraFlow strengthens that capability and gives both teams more opportunity to advance the technology.”TerraFlow, founded in 2024, develops long-duration energy storage and power infrastructure for data centers, industrial facilities, utilities and other large power consumers.

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This article originally appeared on EnergyCapitalHTX.com.

3 fast-growing Houston scaleups named Innovation Awards finalists

meet the finalists

From IPOs to groundbreakings, some of Houston's most innovative companies reached major milestones this year.

As part of the 2026 Houston Innovation Awards, our Scaleup of the Year category honors innovative later-stage startups that have recently reached a significant milestone in company growth. Three scaleups have been named finalists for the 2026 award.

Read more about these businesses, their founders and their breakthrough technologies below. The 2026 winners will be announced on InnovationMap.com in mid-November.

Erock

Energy infrastructure company Erock, previously known as Enchanted Rock, develops dual-purpose microgrids that rely on natural gas and renewable natural gas to produce lower carbon emissions and air pollutants than diesel generators. Its products can provide bridge power before grid interconnection, backup power during outages and dispatchable capacity that supports long-term grid reliability. The company has more than 1,100 megawatts of installed capacity and over 20 years of experience serving commercial, municipal and large-scale technology customers.

Erock completed its initial public offering this year, raising approximately $600 million in gross proceeds. It also grew its contracted power system sales backlog to approximately $1.7 billion, up tenfold year-over-year, with production sold out through 2028, according to the company's application. The company secured a major equipment order from Anthropic, began construction of the 366-megawatt El Paso Electric project supporting Meta's data center campus, and started assembly operations at its Hyperion facility in Cypress, Texas.

Hertha Metals

Hertha Metals produces lower-cost, lower-emission steel and high-purity iron. The company has developed a single-step process that uses natural gas as a direct reductant instead of metallurgical coal, which cuts production costs by more than 25 percent and emissions by up to 50 percent, according to the company. The same process produces high-purity iron needed for high-purity steels and rare earth magnets. The company says it aims to "re-industrialize America’s production of critical materials."

Hertha Metals was founded by CEO Laureen Meroueh in 2022 and emerged from stealth last year with more than $17 million in venture capital funding. The company closed a $133.65 million Series A this month and also broke ground on its $100M high-purity iron factory known as Chalyx in Conroe.

Venus Aerospace

Spacetech company Venus Aerospace is developing a high-thrust rotating detonation rocket engine (RDRE) that replaces the subsonic combustion used in conventional rocket engines. The RDRE is a compact, simpler engine that can deliver up to 15 percent greater efficiency for defense and space applications. It completed its first U.S. flight test of the engine last summer.

Venus Aerospace was founded in 2020 by CEO Cassie Duggleby and CTO Andrew Duggleby. It raised a $20 million Series A in 2022 and $42 million Series A2 in 2025. It closed a $91 million Series B earlier this year and expanded its leadership team. The company is working toward longer-duration and higher-thrust testing and advancing its flight program.

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