Texas angel investor group expands to make impact in Houston

angels flying in

Austin-founded SWAN Impact Network has entered the Houston innovation ecosystem. Photo via Getty Images

An angel investment network founded in Austin has announced its entrance into the Houston market.

SWAN Impact Network, which focuses on funding early-stage, impact-driven startups, announced that Houston will be its next market expansion. Founded in 2016, the organization expanded to Dallas two years ago. Now, SWAN is hitting the Bayou City and is actively looking for potential angel investors to join its network.

"Houston is the logical place for us to go because a lot of our deep expertise we developed is grounded around life science, health and wellness, and environmental," Bob Bridge, executive director of SWAN, tells InnovationMap. "There's a lot of people in Houston in the spaces where we've spent most of our time and money."

SWAN, originally founded as the Southwest Angel Network, has grown from several investors to over 80 across Texas. The investors, who meet virtually, range from former entrepreneurs, seasoned investors, and first time angels.

Valerie Tompson, who's serving as the Houston market lead, is an example of someone who was drawn to SWAN's mission, even though she had never invested in startups before.

"I was intrigued by the idea of being able to invest in companies that are making a difference in the world — and it's not a charitable donation," she says, explaining that joining a network allowed for her to learn the ropes and understand the process.

Bridge says they are looking to add 20 Houston investors over the next year. He says they are also interested in adding on volunteer analysts to help in the diligence work of the group. Whether you're a frequent investor or just interested in learning more, SWAN's door is open.

"We encourage new angels not to invest at first — go with us for a ride for six months, learn how we think about companies, see a bunch of companies pitch," Bridge says. "Once they start to get the comfort level up, then they can start making investors. We're very much about helping new angels get comfortable."

Currently, SWAN has two Houston startups — Scriptly Rx and Eisana — in its investment portfolio. In addition to the investor network, SWAN, a nonprofit organization, also has its SWAN Impact Philanthropic Fund that also invests in impact-driven businesses.

SWAN is hosting an event at the Ion on Wednesday, May 31, at 6 pm to celebrate its new Houston expansion, as well as to host a panel discussing impact investing. The event is free to attend, and registration is open.

Valerie Tompson, Houston chapter lead, and Bob Bridge, executive director, will be at the May 31 event. Photos courtesy of SWAN

From Your Site Articles
The Business Angel Minority Association launched at a breakfast event during Houston Tech Rodeo. Photo by Nijalon Dunn

Houston investors create angel network focused on minorities

money on minorities

Maria Maso was frustrated with her investment opportunities in Houston. So, she's doing something about it.

Maso has launched the Business Angel Minority Association, or baMa, to gather established or brand new angel investors to move the needle on investments into minority-founded startups. The organization, which launched at a breakfast event at Amegy Bank's Cannon Tower during the Houston Tech Rodeo week, is now seeking investor members.

A native of Barcelona, Maso moved to Houston around seven years ago and started investing in startups a few years later. She tapped into a local organization, but didn't have a positive experience.

"I joined an organization in town, and I started to see deals. But I never made an investment in those deals. I faced two issues: They weren't inclusive enough and no one was telling me how to invest," Maso says.

She joined other angel groups around the world, wrote a lot of checks, and still was frustrated with what was available in Houston. She reached a breaking point in October and her friend and colleague, Juliana Garaizar, told her, "If you don't like it, change it."

So, baMa was born and has launched with lofty goals. Maso, founder and CEO, and Garaizar, president, want to round up 100 investors by the end of 2020. And they want these investors to write checks.

"We are not a networking organization. We are an investment organization. We are expecting at some point that you are writing a check to a startup," Maso tells the crowd. "If we are doing our job properly and we are showing you the right startups, you should be able to make a check at some point."

The organization's members will see deal flow and regular pitches and programming. At the launch event, three Houston companies — Kanthaka, on-demand personal training app, Security Gate, cybersecurity startup, and Pantheon, wellness program app — pitched to the room.

"This is a great opportunity — this is not impact investing or doing the right thing," Garaizar says. "This is actually going to generate money. Investing in diversity gives a 35 percent more ROI to investors."

BaMa already has plans to grow, Maso says. The organization will have a national presence with multiple chapters across the country.

"We are already discussing with Boston, Miami, and Palo Alto," says Maso. "We don't have an agreement yet, but my plan is by the end of the year open the second chapter."

But starting in Houston was intentional. There's so much untapped potential in Houston — money wise and in terms of startups.

"We are in Houston, the most diverse city in the U.S., and still our investment community doesn't look like our entrepreneurship community," Garaizar says. "The only way we are going to bridge this gap is if our investment community starts looking more like the entrepreneurship community."

For Carolyn Rodz, founder of Houston-based Alice and baMa partner, she's tired of hearing about the lack of minority investors and diversity of investments. This organization is about making a move.

"We've had enough talk with all these issues — how do we actually take the actions to move this forward," Rodz says. "I'm tired of hearing the same story year after year, and every time I hear the statistics, I roll my eyes. We know the story. We've heard it. Let's actually do something to change it."

Ad Placement 300x100
Ad Placement 300x600

CultureMap Emails are Awesome

Property Showcase

Fast-growing Houston-based geothermal energy co. secures $255M in additional funding

show me the money

A Houston company that's responding to rising energy demand by harnessing geothermal energy through its technology has again secured millions in funding. The deal brings Fervo's total funding secured this year to around $600 million.

Fervo Energy announced that it has raised $255 million in new funding and capital availability. The $135 million corporate equity round was led by Capricorn’s Technology Impact Fund II with participating investors including Breakthrough Energy Ventures, CalSTRS, Congruent Ventures, CPP Investments, DCVC, Devon Energy, Galvanize Climate Solutions, Liberty Mutual Investments, Mercuria, and Sabanci Climate Ventures.

The funding will go toward supporting Fervo's ongoing and future geothermal projects.

“The demand for 24/7 carbon-free energy is at an all-time high, and Fervo is one of the only companies building large projects that will come online before the end of the decade,” Fervo CEO and Co-Founder Tim Latimer says in a news release. “Investors recognize that Fervo’s ability to get to scale quickly is vital in an evolving market that is seeing unprecedented energy demand from AI and other sources.”

Additionally, Fervo secured a $120 million letter of credit and term loan facility from Mercuria, an independent energy and commodity group that previously invested in the company.

“In surveying power markets across the U.S. today, the need for next-generation geothermal is undeniable,” Brian Falik, group chief investment officer of Mercuria, adds. “We believe in Fervo not just because their EGS approach is cost-effective, commercially viable, and already being deployed at scale, but because they set ambitious targets and consistently deliver.”

In February, Fervo secured $244 million in a financing round led by Devon Energy, and in September, the company received a $100 million bridge loan for the first phase of its ongoing project in Utah. This project, known as Project Cape, represents a 100x growth opportunity for Fervo, as Latimer explained to InnovationMap earlier this year. As of now, Project Cape is fully permitted up to 2 GW and will begin generating electricity in 2026, per the company.

Other wins for Fervo this year include moving into its new headquarters in downtown Houston, securing a power purchase agreement with California, growing its partnership with Google, and being named amongst the year's top inventions by Time magazine.


Investors from Houston, Boston fuel Greentown with $4M commitment

seeing green

Greentown Labs, a climatetech incubator with locations in the Houston and Boston areas, has announced it has received funding from a mix of investors.

The $4 million in funding came from both of the Houston and Massachusetts locations. Houston investors included Bobby Tudor, CEO of Artemis Energy Partners and chairman of the Houston Energy Transition Initiative; David Baldwin, co-founder of OpenMinds and TEX-E and partner at SCF Partners; and Rice University. Other investors included MassDevelopment and the City of Somerville.

“The challenges of the energy transition are immense, and the role played by technology incubators like Greentown Labs is essential,” Tudor says in a news release. “We believe this role, which is a partnership between academia, industry, philanthropists, entrepreneurs, and governments, is the best way to get to effective, scalable solutions in a time frame that the urgency of the challenge requires. We need all hands on deck, and this partnership between Massachusetts and Texas can be a role model for others.”

According to Greentown, the funding will support its financial position and contribute to preparing the incubator for its next chapter of supporting its its leadership team prepare for Greentown’s next chapter supporting and growing its 575 startups.

“Greentown’s mission aligns closely with the Houston Energy Transition Initiative’s goal of accelerating global solutions to address the dual challenge of meeting growing energy demand globally while also significantly reducing CO2 emissions,” adds Steve Kean, president and CEO of the Greater Houston Partnership.

With the announcement of the funding, Greentown named its board members, including Tudor, who will serve as Greentown Labs Board Chair. The other Houston-based board members are:

  • David Baldwin, co-founder of OpenMinds and TEX-E; partner atSCF Partners
  • Bob Harvey, former president and CEO of GHP; board member of TEX-E
  • Jane Stricker, senior vice president of energy transition and executive director of HETI

“With this new funding, Greentown is poised to expand its impact across its existing ecosystems and support even more climatetech startups,” adds Kevin Dutt, interim CEO of Greentown Labs. “We believe in the essential role entrepreneurship will play in the energy transition and we’re grateful for the support of our partners who share in that belief and our collective commitment to commercializing these technologies as quickly and efficiently as possible.”

According to Greentown, the incubator plans to announce its new CEO in the coming months.

------

This article originally ran on EnergyCapital.

From hiring tips to AI's impact on the workforce, here's what guest columns were the most read in 2024

year in review

Editor's note: Every week, InnovationMap runs one or two guest columns written by tech entrepreneurs, public relations experts, data geniuses, and more. As Houston's innovation ecosystem gets ready for 2025, here are some of this year's top guest contributor pieces — each with pertinent information and advice for startups both at publishing and into the new year. Make sure to click through to continue reading each piece.

Is your New Year's resolution to start contributing? Email natalie@innovationmap.com to learn more.

How to avoid bad hiring decisions when it matters most, according to this Houston expert

Despite the inevitability of bad hires, recruiters equipped with proper tools and training can identify red flags and take preventive measures. Photo by Tima Miroshnichenko from Pexels

Written by Karen Leal, performance specialist with Houston-based Insperity, a provider of human resources offering a suite of scalable HR solutions available in the marketplace.

Hiring the right people for the right roles is ideal and can make an organization reach new heights. The reality is every business has made a bad hire.

Finding the wrong fit for a team or organization is not uncommon, but it is important to know what it costs the organization, which can be detrimental to company finances and its workplace culture, especially small businesses and startups where the impact is magnified.

The U.S. Department of Labor reports a bad hire can cost up to 30 percent of the employee’s wage, which would be approximately $18,000 since the average American wage is $60,000. In addition, there are soft costs of managers and leadership time during the hiring and training process, which adds up quickly. Continue reading.

How AI is changing product management and what you need to know

A product management expert shares how artificial intelligence is affecting the process for the tech and startup worlds. Photo via Getty Images

Written by Natasha Gorodetsky, founder and CEO of Product Pursuits, a Houston company that helps early stage and venture-backed startups build products and create impact.

For the past 14 months, everyone has been talking about ways artificial intelligence is changing the world, and product management is not an exception. The challenge, as with every new technology, is not only adopting it but understanding what old habits, workflows, and processes are affected by it.

Product managers — as well as startup founders leading a product function — more than any other role, face a challenge of bringing new life-changing products to market that may or may not be received well by their users. A product manager’s goal is complex — bring value, stay ahead of the competition, be innovative. Yet, the "behind the scenes" grind requires endless decision making and trade offs to inspire stakeholders to move forward and deliver.

As we dive into 2024, it is obvious that AI tools do not only transform the way we work but also help product managers create products that exceed customer expectation and drive businesses forward. Continue reading.

Houston expert shares 3 ways to stay on top of employee mental health

Companies that intentionally focus on their employees’ mental well-being will reap the benefits of a happier, healthier workforce. Photo via Getty Images

Written by Dennis Yung, executive vice president and general manager at Skanska.

Conversations surrounding mental health have come to the forefront of business and is an imperative aspect that cannot be ignored by business leaders.

Approximately 20 percent of Americans, which is 50 million people (about twice the population of Texas), are experiencing a mental illness, 15 percent of Americans had a substance use disorder in the past year and nearly 5 percent, over 12.1 million adults, reported serious thoughts of suicide (Mental Health America). Notably, certain professions, such as construction, exhibit higher suicide rates, (CDC). With these staggering numbers, the foundation of workplace safety extends beyond physical well-being to encompass psychological health.

The landscape has undergone a transformation, stemming from the pandemic, and the stigma of mental health concerns and seeking help has loosened. Recognizing that September is Suicide Prevention Month, below are three ways businesses of every size can actively support the mental well-being of their employees. Continue reading.

Houston expert shares 3 business trend predictions for 2024

Here are predictions for what current and emerging trends will further shape businesses in 2024. Photo via Getty Images

Written by Bryce Lindner, senior vice president and market executive, commercial banking in South Texas at Louisiana at Bank of America.

Last year was a dynamic year for businesses across all sectors. Artificial intelligence went from a novel technology to a more widely utilized business productivity tool. Many companies invested additional resources in sustainable business practices. And digital business solutions helped companies thrive.

Here are predictions for what current and emerging trends will further shape businesses in 2024. Continue reading.

How this Houston innovator is using his personal connection to ALS fuel his fight for a cure

Daniel Barvin has a neurodegenerative disease in his near future. He joined Houston-based Coya Therapeutics to help fight for a cure to the aggressively deadly ALS. Photo via Getty Images

Written by Daniel Barvin, vice president of operations and patient advocacy at Coya Therapeutics.

We can never predict how our lives will turn out, but then maybe some of us can. Genetic testing showed that I, like my grandfather, aunt, uncle and father before me, would most likely die of amyotrophic lateral sclerosis, more commonly known as ALS, and/or frontotemporal degeneration (FTD) in my 40s.

Being 36, it’s possible that fear could have overtaken my life, but instead I chose to fight for every chance to change not only my life, but the lives of millions who are suffering or may one day suffer from neurodegenerative disease.

ALS is a rare disease that robs one of their ability to control their muscles, leading them to lose their ability to walk, talk and eventually breathe. Eighty percent of cases are sporadic (of unknown origin) and 20 percent have known genetic causes. Continue reading.

View All Listings