Founders, investors sound off on Houston's VC scene, energy innovation potential, and more

EAVESDROPPING in Houston

Hit the highlights of Venture Houston 2023 with these overheard moments from the event. Photo courtesy of HX Venture Fund

Last week, nearly 1,000 people convened in Houston to discuss venture capital activity, startups, and decarbonization, and the Houston factor among it all.

On September 7, Venture Houston hosted several keynote addresses and panels throughout the day's programming, and investors from across the country discussed with Houston-based startup and corporate leaders on topics from seed funding to cultivating an ecosystem.

The annual event, presented by HX Venture Fund, a fund of funds that deploys capital into VC funds with an interest in Houston, had one significant through line throughout the day, and it was Houston's role within innovation and the energy transition.

Whether you missed the event or were there to soak in every second, here's a roundup of key statements on this topic from the panelists.

“We mapped out Texas as a high priority because we knew you can’t do energy without Texas. You can’t do energy without Houston."

— Carmichael Roberts, investment committee co-lead for Breakthrough Ventures. "The opportunity that Houston has to be the unambiguous leader is because everywhere else can do energy transition, but they still can’t do what Houston does,” he continues.

“There’s no better place in the world than Houston to build and scale a climate tech startup.”

— Tim Latimer, CEO and co-founder of Fervo Energy. “But I don’t know if I’m ready to make the claim that we’re the best place to start a business,” he adds.

“Houston needs that first, higher-profile investor who’s Houston-based, Houston-first, and wants to put as much capital as possible into energy transition and climate tech companies.”

— Craig Wilson, managing director of NYU’s Tandon Future Labs. “Houston is blessed with an incredible amount of CVC and late stage capital," he continues. "What it really could use is early stage capital.”

“There are a couple aspects you need for an ecosystem, and Houston has been putting a lot of those in place, but it’s not perfect yet, and there’s still work that this ecosystem needs to do."

— Trevor Best, CEO and co-founder of Syzygy Plasmonics. Startups need talent, facilities, capital, and customers. “Here in Houston, for energy transition technologies, I don’t know if there’s an ecosystem that can check the box (for customers) stronger than Houston," he adds, explaining that talent is here too. Where Houston needs improvement, according to Best, is in facilities, which is seeing some progress, and capital development.

“I think Houston is actually the perfect place for becoming the energy transition capital. If you ask me, I think we already are.” 

— Andrea Course, venture principal of Shell Ventures. “It really just takes people doing what we’re doing now to make it even greater," she adds.

“We have to figure out ways for how big energy companies work with new technology providers in partnership and not say it’s a David versus Goliath thing.”

— Gaurab Chakrabarti, co-founder and CEO of Solugen. “That’s a philosophical misalignment,” he continues. “Instead of saying it’s an absolute problem, accept that it’s a transition.”

From Your Site Articles
Ad Placement 300x100
Ad Placement 300x600

CultureMap Emails are Awesome

Property Showcase

Houston startup designing emergency response drones lands $5.2M in seed funding

cha-ching

Houston-based Paladin, whose remotely controlled drones help first responders react quickly to emergencies, has collected $5.2 million in seed funding.

Gradient, a seed fund that backs AI-oriented startups, led the round. Also participating were Toyota Ventures, the early-stage VC arm of Japanese automaker Toyota; venture capital firm Khosla Ventures; and VC fund 1517.

“We believe Paladin will drive meaningful change in public safety and redefine how communities are served,” Gradient said in an announcement about the seed round.

In 2019, Paladin received $1.3 million in seed funding from Khosla Ventures and Gmail creator Paul Buchheit, a group partner at Y Combinator. In 2018, the year it was co-founded by Divyaditya Shrivastava and Trevor Pennypacker, Paladin graduated from Y Combinator’s three-month boot camp.

Paladin’s AI-enhanced autonomous drones help public safety agencies, such as police and fire departments, respond to 911 calls. These drones provide aerial views of emergency scenes in an effort to decrease response times, improve “situational awareness,” and save lives, according to a Gradient blog post.

Among the agencies that have tried out Paladin’s technology is the Houston area’s Memorial Villages Police Department. The department participated in a three-month Paladin pilot project in 2019.

"(This is) one of the first departments in the country to be testing this technology," Shrivastava told InnovationMap in 2019. "We're very limited in the area that we cover, and that's just because we're taking baby steps and going as carefully and deliberately as possible."

Gradient says more than 12,000 drone missions have been performed using Paladin’s hardware and software platform. Agencies that have adopted the platform report average response times under 90 seconds. Furthermore, the technology has allowed them to resolve nearly one-third of 911 calls without dispatching first responders.

“Paladin keeps innovating, recently launching Payload Drop, a groundbreaking feature that enables drones to deliver lifesaving equipment — such as Narcan, life vests, and AEDs — directly to emergency scenes,” says Gradient.

On its website, Paladin says it envisions autonomous drones responding to every 911 call in the U.S. by 2027.

“The information is paramount, the technology exists and is rapidly improving, and the need is there. We want to help,” Paladin proclaims.

Energy, investment groups take up leases in Houston innovation hub

moving in

The Ion in Midtown has some new tenants taking up residence in its 90 percent-leased building.

Occidental Petroleum Corporation, Fathom Fund, and Activate are the latest additions to the Ion, according to a news release from Rice University and the Rice Real Estate Company, which own and operate the 16-acre Ion District where the Ion is located. With the additions, the building has just 10 percent left up for grabs.

“As the Ion continues to attract leading companies and organizations across industries, it’s clear that our vision of creating a dynamic and collaborative environment for innovation is resonating,” Ken Jett, president of the Rice Real Estate Company and vice president of facilities and capital planning at Rice, says in the release. “We are proud to set the standard for how the workplace can evolve to foster the commercialization and growth of transformative technologies that enhance quality of life in our community and beyond.”

Oxy, which was named a corporate partner of the Ion last year, now has nearly 6,500 square feet on the fourth floor where it will be housing its Zero In department that's focused on pioneering low-carbon initiatives. The build out process is slated to be completed by early 2025.

While Oxy represents the corporate side of innovation, the other two additions have their own roles in the innovation arena. Houston-based Fathom Fund, which launched its $100 million fund earlier this year, is targeting deep-tech venture opportunities and is led by Managing Partners Paul Sheng and Eric Bielke.

Founded in Berkeley, California, Activate, which announced its expansion into Houston in 2023, has officially named its local office in the Ion. The hardtech-focused incubator program recently named its inaugural cohort and opened applications for the 2025 program.

Other recent joiners to the Ion includes Kongsberg Digital, Artemis Energy Partners, CES Renewables, and Eleox.

“The partnerships we’ve forged are vital to shaping the Ion into a vibrant ecosystem for startups, where collaborative innovation is not only driving local economic growth but also positioning Houston as a global leader in the energy transition,” Paul Cherukuri, chief innovation officer at Rice University, says. “With our team leading the programming and activation across the Ion district, we are creating companies that harness cutting-edge technology for the benefit of society—advancing solutions that contribute to social good while addressing the most pressing challenges of our time. This powerful network is redefining Houston’s role in the future of energy, technology, and social impact.”

Houston's top innovators named, VC activity takes a hit, and more top tech, startup news from the week

now trending

Editor's note:Let's roundup the most-read Houston innovation news from the week. Trending Houston tech and startup articles from InnovationMap and its daily newsletter included the the Houston Innovation Awards finalists being named, a new report that shows Houston venture funding is down, and more.

Top innovators: 2024 Houston Innovation Awards finalists revealed

Here's what Houston startups and innovators will be honored at the Houston Innovation Awards on November 14. Graphic via Gow Media

After nearly 300 nominations, InnovationMap and its group of judges are ready to reveal the finalists for this year's Houston Innovation Awards.

Taking place on Thursday, November 14, the Houston Innovation Awards celebrates all of Houston's innovation ecosystem — startups, entrepreneurs, investors, mentors, and more. Over 50 finalists will be recognized in particular for their achievements across 13 categories, which includes the 2024 Trailblazer Legacy Awards that were announced earlier this month.

Click here to see the 2024 Houston Innovation Awards finalists.

After trending up all year, Houston VC activity drops in Q3

During the third quarter of 2024, Houston-area companies saw a 15 percent decrease of VC investment compared to the third quarter of 2023. Photo via Getty Images

New data from the PitchBook/NVCA Venture Monitor reveals a seesaw pattern in the Houston area’s venture capital funding.

VC fundraising by Houston-area companies climbed during the first part of this year compared with the same period last year, according to the latest PitchBook/NVCA Venture Monitor. But from 2023 to 2024, the region’s third-quarter VC haul fell by a double-digit percentage.

In the first three quarters of 2024, Houston-area companies collected $1.24 billion in venture capital, the PitchBook/NVCA Venture Monitor shows. That’s up eight percent from the $1.15 billion raised in the first three quarters of 2023. Continue reading.

Houston health care leader secures funding, milestones for latest initiatives across cancer, stroke, and more

UTHealth Houston has secured millions in grant funding — plus has reached a new milestone for one of its projects. Photo via utsystem.edu

UTHealth Houston is making waves in many disciplines right now. From cancer to Alzheimer’s disease to stroke, the institution is improving outcomes for patients in new ways. Last week, UTHealth announced three exciting updates to its roster of accomplishments.

On October 8, UTHealth announced that it had received a $4.8 million grant from the National Cancer Institute, aimed at helping cancer survivors to continue their healing and enhancing primary care capacity. It will be put into action by UTHealth researchers working with eight community health centers around Texas that treat un- and underinsured patients. The initiative is called Project CASCADE, which stands for Community and Academic Synergy for Cancer Survivorship Care Delivery Enhancement.

“Project CASCADE focuses on how primary healthcare teams provide whole-person and coordinated care to underserved patients who have a history of cancer,” says Bijal Balasubramanian, professor of epidemiology and the Rockwell Distinguished Chair in Society and Health at UTHealth Houston School of Public Health, a multiple principal investigator of the study. “Primary care is uniquely suited to deliver whole-person and coordinated care for cancer survivors because, at its core, it prioritizes, personalizes and integrates healthcare for all conditions, not just the cancer.” Continue reading.

Houston biotech VC firm's portfolio cos. score $5.3M in federal funding

Three of First Bight Venture's portfolio companies have secured federal funding. Photo via Getty Images

Three portfolio companies of Houston venture capital firm First Bight Ventures have received a combined $5.25 million from the U.S. Defense Department’s Distributed Bioindustrial Manufacturing Program.

“The allocation of funds by the federal government will be critical in helping grow biomanufacturing capacity,” Veronica Breckenridge (née Wu), founder of First Bight, says in a news release. “We are very proud to represent three dynamic companies that are awardees of this competitive and widely praised program.” Continue reading.

NASA awards Houston university $1.2M for diversity in aerospace initiative

The funding will go toward promoting diversity in aerospace workforce development. Photo via UH.edu

NASA will award the University of Houston $1.2 million toward a collaborative project with some of the biggest players in aerospace to foster diversity in the field.

The funds will go toward UH's Partnership for Inclusivity in Engineering Education and Research for Space, or PIE2RS, which is a collaboration between UH, UH-Clear Lake, NASA’s Johnson Space Center, the Boeing Company, and the Greater Houston Partnership. Continue reading.

View All Listings