Houston venture group leads Austin-based tech company's $8M series A round

spruced

Spruce, founded by Ben Johnson in Houston, has announced a $8 million series A round and a plan to continue expansion. Photo courtesy of Spruce

A Houston-founded startup that designed an app-based service for apartment dwellers has closed an $8 million series A led by Houston-based Mercury Fund.

Spruce, which was founded in Houston in 2016 as Apartment Butler before rebranding and relocating to Austin, announced the close of its latest round this week. The startup partners with multifamily companies to provide concierge-like services, such as cleaning, dog walking, and even COVID-19 sanitation.

"Spruce is changing how people live in their homes," says Ben Johnson, founder and CEO, in a news release. "Today's apartment community is a vibrant micro-economy for services and goods, and Spruce efficiently channels these interactions into a single marketplace. This Series A will expand our offerings to more residents and properties as well as continue our national roll-out."

Mercury Fund also invested in the company's seed round last year, and since that funding, Spruce has expanded out of state and into nine new markets. According to the release, the company, which still has an office in houston, has 40 employees and over 760 properties with 230,000 units on its platform.

"Spruce has perfected their market model and built a best-in-class team. Their resilience and growth during this unprecedented time have impressed us, and we are excited to continue on this journey with them," says Blair Garrou, managing director at Mercury Fund, in the release.

Houston-based Sweat Equity Partners, a new Spruce investor, also contributed to the round. Andrew White, president of the investment group, will also join the board of directors.

"Spruce is building a valuable platform focused on delivering outstanding home services under the unique requirements of the multi-family segment," says White in the release.

Steven Pho, an Austin-based entrepreneur and investor previously with Favor Delivery and RetailMeNot, will also join the board.

"Spruce has an amazing opportunity to quickly and cost effectively reach a mass market through their partnerships with national property managers," Pho says in the release. "This unique channel strategy differentiates Spruce from their competitors and enables them to rapidly achieve scale and density in new markets."

Spruce's platform is available across 760 multifamily properties. Photo via GetSpruce.com

Houston-founded Spruce has added some new services to help sanitize multifamily facilities during the COVID-19 pandemic. Getty Images

Houston-founded startup launches new COVID-19-focused sanitizing services

keeping clean

A startup that provides concierge services — like cleaning and dog walking — to apartment renters has expanded its services to outside the apartment units to help multifamily properties with sanitization and disinfection services to protect their communities from COVID-19.

Austin-based Spruce, which was founded in Houston in 2016 and still has an office locally, has a new suite of services for disinfecting common areas — like leasing offices, hallways, mail rooms, etc. — using EPA-compliant chemicals.

"Now, more than ever, it is critical for apartment communities to make sure their common areas are regularly decontaminated and disinfected to help slow the spread of the coronavirus and to prevent as many infections as possible," says Ben Johnson, founder and CEO of Spruce, in a statement.

The services include a weekly disinfectant of high-touch spots — like door handles and elevator buttons — as well as a weekly comprehensive cleaning that involves mopping, surface cleaning, and vacuuming. The startup also offers a bimonthly fogging service that can completely cover both indoor and outdoor areas with disinfectant. This solution can protect surfaces for months, according to the news release.

"This is an unprecedented public health crisis, and we worked closely with our clients to determine the biggest need and hope these services will give apartment communities one more weapon to use in the fight against COVID-19 and will help give both operators and their residents peace of mind," Johnson continues in the release.

Spruce still offers its usual suite of services for individual apartment units such as daily chores and housekeeping and pet care, but extra precautions have been added since the coronavirus outbreak. The service providers are required to go through temperature checks before entering the properties. They also wear gloves, changing them out between units, and are incorporating paper products when able.

Since its founding, Spruce, which used to be called Apartment Butler, has expanded throughout the state and into South Florida, Denver, and Salt Lake City. Spruce has raised over $6 million in venture capital, per Crunchbase data, and that includes funds from Houston institutions like Mercury Fund, the Houston Angel Network, and Fitz Gate Ventures, as well as Austin-based Capital Factory.

Apartment Butler has reemerged as Spruce with fresh funds to take the company to Denver and beyond. Photo via GetSpruce.com

Houston startup rebrands, closes $3 million investment round, and plans first out-of-state expansion

Spruced up

A Houston startup that coordinates hospitality services — such as cleaning, dog walking, etc. — has recently cleaned up itself, with a fresh rebranding and new funds to further develop the company.

Spruce (née Apartment Butler) has closed a venture capital round at $3 million. Princeton, New Jersey-based Fitz Gate Ventures led the round with three Texas investors: Houston-based Mercury Fund, the Houston Angel Network, and Austin-based Capital Factory, which recently announced its Houston outpost.

The fresh funds will allow for Spruce to expand its services out of Texas for the first time. Denver will be the first non-Texas market for the company, according to a news release. The funds will also go toward sales, marketing, and software development scaling.

"We could not be more appreciative of the support from these outstanding investors," says Ben Johnson, founder and CEO of Spruce, in the release. "Since our founding, we have grown aggressively as more and more apartment communities have seen the demand for hotel-inspired services increase dramatically. We look forward to continuing our strategic, rapid growth with this funding that will play a critical role in that expansion."

Last month, Apartment Butler rebranded into Spruce to better represent the company and its market disrupting features, according to a news release.

"Since our inception just a few short years ago, we have experienced an incredible rate of growth, demonstrating the demand residents have for hotel-inspired services in their apartment homes," says Johnson in the June 25 release. "We believe the new Spruce brand name better connects with consumers and reflects the full range of services we have to offer."

Spruce's services include daily chores, housekeeping, pet care (dog walking, pet sitting, etc.), and laundry and dry cleaning. Spruce has a B-to-B-to-C model in which it works with apartment communities to broker partnership deals to reach their residents.

Late last summer, Johnson closed a $2 million seed round for his company and expanded the company to Austin, hinting at the out-of-state growth being in the near future for the startup.



Apartment dwellers that live in a Spruce-partner community can access services through an app or desktop interface.Photo via GetSpruce.com

These five companies are starting 2019 out with some cash, and here's what they plan on doing with it. Getty Images

5 Houston startups beginning 2019 with new capital

Venture adventures

Finding growing Houston startups is as easy as following the money, and a few local companies are starting 2019 strong with a recent round of funding closed. InnovationMap has rounded up a few recent raises to highlight heading into the new year.

Apartment Butler

Ben Johnson's business idea turned into a growing company making the lives of apartment dwellers easier. Courtesy of Apartment Butler

Apartment Butler closed a $2 million seed funding round in October that was led by Houston-based Mercury Fund. The Houston startup partners with apartment communities to streamline services — like cleaning or dog walking — for residents.

Founder Ben Johnson recently spoke with InnovationMap about his career and the company. He says the company plans to launch in Austin this month and another market in March. Apartment Butler will also expand to microservices — smaller services that have only been available to the rich before.

The funding reportedly is being used to expand the company's footprint as well as make competitive hires.

Data Gumbo

blockchain

Blockchain-as-a-service company, Data Gumbo, closed its seed fund with more money than it planned for. Getty Images

Data Gumbo, a Houston company that provides blockchain technology as a service, overachieved when it closed its seed round in August 2018. The company closed with $1.35 million, which is $300,000 more than the goal.

Led by CEO Andrew Bruce, Data Gumbo has a viable product and is producing revenue, according to a release. The company launched a full implementation of its technology on a Diamond Offshore rig this fall, which made it the first commercial installation of industrial blockchain technology.

Among the investors was Houston-based Carnrite Ventures and Silicon Valley's Plug and Play, the release notes.

Validere

Validere, a Canada-based energy logistics company, is expanding in Houston. Courtesy of Validere

While based in Canada, Validere is using its recent raise to expand into the Houston market. The seed round closed in October with $7 million raised. The company's co-founder, Nouman Ahmad, told InnovationMap in a recent article that they are focusing on expanding the Houston office and are actively hiring.

"The goal in 2019 is to be at the same stage — in terms of customer success — in the U.S. market as we were at the end of 2018 in the Canadian market," Ahmad says.

Intelligent Implants

Intelligent Implant's co-founder, Juan Pardo, told the crowd at Demo Day that his company's device allows for 50 percent faster bone growth in patients. Photo by Cody Duty/TMC

Recent graduate of the Texas Medical Center's TMCx medical devices program, Intelligent Implants created a technology that stimulates bone growth following corrective back surgery.

The Houston startup closed a funding round in October with two investors, according to Crunchbase. The total raise was reported as a $1 million Mezzanine round on AngelMD.

Saranas

Saranas Inc. is testing its technology that can detect and track internal bleeding complications. Getty Images

Saranas Inc., a Houston-based medical device company, is currently in its clinical trials thanks to a $2.8 million Series C fund that closed in May 2018. The trials are focused on the company's key device, called the Early Bird Bleed Monitoring System, which is designed to detect and track bleeding complications related to endovascular procedures. These medical procedures treat problems, such as aneurysms, that affect blood vessels.

In a story for InnovationMap, Zaffer Syed, president and CEO of Saranas, says the clinical trials are crucial for receiving approval from the U.S. Food and Drug Administration. That approval is expected this year.

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Venture adventures will be a regular roundup on InnovationMap. If your company is in the process of closing or recently closed on a round, please email Natalie Harms at natalie@innovationmap.com.

One of this week's top stories is about a Houston company providing pain-relieving technology on the go. The Squid Team/Twitter

5 most popular innovation stories in Houston this week

Now Trending

Editor's note: InnovationMap is starting strong — right out of the gate of 2019. From a restaurant-focused app to B2B companies making a splash in their industry's, the first trending stories post of the year has some great reads.

3 Houston innovators to know this week

These three entrepreneurs have a lot up their sleeves for 2019. Courtesy images

InnovationMap has three inspiring entrepreneurs to lead you into 2019. All three are behind Houston startups that are planning for big growth in the upcoming year. So, read their stories and get familiar with their names and faces — they aren't going anywhere. Read the full story here.

Restaurant-driven app focuses on Houston's food scene

Crityk's main goal is to be a marketing asset to restaurants. Getty Images

One night, Sumit Sikka was on a quest to find the best Moscow Mule in Santa Monica. He couldn't find anything helpful online, and when he finally did get a good recommendation, he was already done for the night.

It was through this experience that Sikka knew he wanted to make a restaurant finder app, but he wanted to do something different from Yelp or Google Reviews. On those platforms, a restaurant can get crushed by a bad review that provides false information. So, when he started getting the ball rolling on Crityk, he realized he needed to give the restaurants a voice. Read the full story here.

Houston company creates portable device that eases pain without the use of drugs

For years, Squid Compression has helped ease the pain of patients in doctor's offices. Now, anyone can get the treatment on the go. Photo via squidgo.com

Many of the estimated 50 million Americans who suffer from chronic pain turn to drugs — including heavily abused opioids — to relieve their symptoms. Houston-based startup Portable Therapeutix LLC's drug-free solution to pain management seeks to put a dent in the market for prescription painkillers.

In 2018, Houston-based Portable Therapeutix introduced Squid Go, a portable device that's designed to ease the pain and swelling of sore joints and muscles. It's a follow-up to the company's Squid Compression, a pain management device launched in 2013 for patients at rehabilitation centers, hospitals, doctor's offices, and the like. Read the full story here.

Houston software startup pivots to provide digital networking solutions

What started as a way to protect your company from a sketchy business partner has turned into a digital networking tool. Getty Images

Several years ago, David Grimes had a business partner who played dirty. It wasn't until the trial that followed the business wrongdoing that Grimes discovered the man had a history of cheating companies out of money. Grimes envisioned a software service that used public information to research potential investors or associates before signing on the dotted line of a partnership.

"I wanted to find a tool that would alleviate that pain and that risk of doing business," Grimes says. "I couldn't find that tool." Read the full story here.

Oil and gas startup exec positions Houston company for more growth in 2019

Christopher Robart leads Ambyint — a technology company creating the Nest thermostat for oil rigs — with his twin brother, Alex. Courtesy of Ambyint

Most of Christopher Robart's 10-year career in oil and gas has been deliberate and calculated — researching the right startup to be involved in or finding the right buyer for a company he invested in. However, his actual start in the industry wasn't so intentional.

"I sort of fell into oil and gas after I got of college back in 2003," says Robart, who is the president of Ambyint USA. "Before that, I was involved in a few startup things — some digital and some not. I was always sort of an entrepreneur." Read the full story here.


These three entrepreneurs have a lot up their sleeves for 2019. Courtesy images

3 Houston innovators to know this week

Who's Who

This week starts in one year and ends in the next, and InnovationMap has three inspiring entrepreneurs to lead you into 2019. All three are behind Houston startups that are planning for big growth in the upcoming year. So, read their stories and get familiar with their names and faces — they aren't going anywhere.

Ben Johnson, founder and CEO of Apartment Butler

Ben Johnson's business idea turned into a growing company making the lives of apartment dwellers easier. Courtesy of Apartment Butler

Ben Johnson has his own master plan. He'd work as an oil and gas banker for a bit, establish himself, get his MBA, and then, when he was in his 40s, would start his own company. He wasn't wrong about his future as an entrepreneur, but he was off by the timeline.

Johnson started Apartment Butler a few years ago when he saw how apartment communities had the potential to provide streamlined access to resident elected services — such as cleaning or pet care. At the same time, apartment communities across the U.S. were looking to beef up their amenities. Now, Apartment Butler is expanding to its third and fourth markets early next year and is looking to provide more services to its users.

Scott Parazynski, CEO of Fluidity Technologies

Scott Parazynski is a accomplished astronaut and surgeon, but he has a new career focus on drone operation. Courtesy of Fluidity

There are Renaissance men and then there's Scott Parazynski. He's has spent 57 days in space, trained as a trauma surgeon, and climbed Mount Everest as a team physician for the Discovery Channel. His latest conquest is designing a drone controller based on movement in space. The device, called the FT Aviator, allows for one-handed piloting of drones and has the potential to affect the way unmanned vehicles are piloted across industries. As the CEO of Fluidity Technologies, he has big plans for what one-handed drone operation can do.

David Grimes, CEO and co-founder of Snap Diligence

David Grimes thought he was creating a useful tool to vet colleagues. Turns out, he made a way for warm connections better than LinkedIn. Courtesy of Snap Diligence

Hell hath no fury like a businessman scorned. When a business partner ended up being a shady miscreant, David Grimes realized there wasn't a digital vetting tool where you can evaluate a potential associate. After thinking on the idea for a while, Grimes found a co-founder and a way to create an algorithm that can take public information and run it against a person. The company he created is called Snap Diligence.

Now, the tool has morphed into something else that's been unexpectedly in demand. Snap Diligence can find business connections through your already-established network of associates. It's this new feature the company is looking to expand in 2019.

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Innovative Houston-area hardtech startup closes $5M seed round

fresh funding

Conroe-based hardtech startup FluxWorks has closed a $5 million seed round.

The funding was led by Austin-based Scout Ventures, which invests in early-stage startups working to solve national security challenges.

Michigan Capital Network also contributed to the round from its MCN Venture Fund V. The fund is one of 18 selected by the Department of Defense and Small Business Administration to participate in the Small Business Investment Company Critical Technologies Initiative, which will invest $4 billion into over 1,700 portfolio companies.

FluxWorks reports that it will use the funding to drive the commercialization of its flagship Celestial Gear technology.

"At Scout, we invest in 'frontier tech' that is essential to national interest. FluxWorks is doing exactly that by solving critical hardware bottlenecks with its flagship Celestial Gear technology ... This is about more than just gears; it’s about strengthening our industrial infrastructure," Scout Ventures shared in a LinkedIn post.

Fluxworks specializes in making contactless magnetic gears for use in extreme conditions, which can enhance in-space manufacturing. Its contactless design leads to less wear, debris and maintenance. Its technology is particularly suited for space applications because it does not require lubricants, which can be difficult to control at harsh temperatures and in microgravity.

The company received a grant from the Texas Space Commission last year and was one of two startups to receive the Technology in Space Prize, funded by Boeing and the Center for the Advancement of Science in Space (CASIS), in 2024. It also landed $1.2 million through the National Science Foundation's SBIR Phase II grant this fall.

Fluxworks was founded in College Station by CEO Bryton Praslicka in 2021. Praslicka moved the company to Conroe 2024.

5 Houston scientists named winners of prestigious Hill Prizes 2026

prized research

Five Houston scientists were recognized for their "high-risk, high-reward ideas and innovations" by Lyda Hill Philanthropies and the Texas Academy of Medicine, Engineering, Science and Technology (TAMEST).

The 2026 Hill Prizes provide seed funding to top Texas researchers. This year's prizes were given out in seven categories, including biological sciences, engineering, medicine, physical sciences, public health and technology, and the new artificial intelligence award.

Each recipient’s institution or organization will receive $500,000 in direct funding from Dallas-based Lyda Hill Philanthropies. The organization has also committed to giving at least $1 million in discretionary research funding on an ad hoc basis for highly-ranked applicants who were not selected as recipients.

“It is with great pride that I congratulate this year’s Hill Prizes recipients. Their pioneering spirit and unwavering dedication to innovation are addressing some of the most pressing challenges of our time – from climate resilience and energy sustainability to medical breakthroughs and the future of artificial intelligence,” Lyda Hill, founder of Lyda Hill Philanthropies, said in a news release.

The 2026 Houston-area recipients include:

Biological Sciences: Susan M. Rosenberg, Baylor College of Medicine

Rosenberg and her team are developing ways to fight antibiotic resistance. The team will use the funding to screen a 14,000-compound drug library to identify additional candidates, study their mechanisms and test their ability to boost antibiotic effectiveness in animal models. The goal is to move toward clinical trials, beginning with veterans suffering from recurrent infections.

Medicine: Dr. Raghu Kalluri, The University of Texas MD Anderson Cancer Center

Kalluri is developing eye drops to treat age-related macular degeneration (AMD), the leading cause of vision loss globally. Kalluri will use the funding to accelerate studies and support testing for additional ocular conditions. He was also named to the National Academy of Inventors’ newest class of fellows last month.

Engineering: Naomi J. Halas, Rice University

Co-recipeints: Peter J. A. Nordlander and Hossein Robatjazi, Rice University

Halas and her team are working to advance light-driven technologies for sustainable ammonia synthesis. The team says it will use the funding to improve light-driven catalysts for converting nitrogen into ammonia, refine prototype reactors for practical deployment and partner with industry collaborators to advance larger-scale applications. Halas and Nordlander are co-founders of Syzygy Plasmonics, and Robatjazi serves as vice president of research for the company.

The other Texas-based recipients include:

  • Artificial Intelligence: Kristen Grauman, The University of Texas at Austin
  • Physical Sciences: Karen L. Wooley, Texas A&M University; Co-Recipient: Matthew Stone, Teysha Technologies
  • Public Health: Dr. Elizabeth C. Matsui, The University of Texas at Austin and Baylor College of Medicine
  • Technology: Kurt W. Swogger, Molecular Rebar Design LLC; Co-recipients: Clive Bosnyak, Molecular Rebar Design, and August Krupp, MR Rubber Business and Molecular Rebar Design LLC

Recipients will be recognized Feb. 2 during the TAMEST 2026 Annual Conference in San Antonio. They were determined by a committee of TAMEST members and endorsed by a committee of Texas Nobel and Breakthrough Prize Laureates and approved by the TAMEST Board of Directors.

“On behalf of TAMEST, we are honored to celebrate the 2026 Hill Prizes recipients. These outstanding innovators exemplify the excellence and ambition of Texas science and research,” Ganesh Thakur, TAMEST president and a distinguished professor at the University of Houston, added in the release. “Thanks to the visionary support of Lyda Hill Philanthropies, the Hill Prizes not only recognize transformative work but provide the resources to move bold ideas from the lab to life-changing solutions. We are proud to support their journeys and spotlight Texas as a global hub for scientific leadership.”

Investment bank opens new Houston office focused on energy sector

Investment bank Cohen & Co. Capital Markets has opened a Houston office to serve as the hub of its energy advisory business and has tapped investment banking veteran Rahul Jasuja as the office’s leader.

Jasuja joined Cohen & Co. Capital Markets, a subsidiary of financial services company Cohen & Co., as managing director, and head of energy and energy transition investment banking. Cohen’s capital markets arm closed $44 billion worth of deals last year.

Jasuja previously worked at energy-focused Houston investment bank Mast Capital Advisors, where he was managing director of investment banking. Before Mast Capital, Jasuja was director of energy investment banking in the Houston office of Wells Fargo Securities.

“Meeting rising [energy] demand will require disciplined capital allocation across traditional energy, sustainable fuels, and firm, dispatchable solutions such as nuclear and geothermal,” Jasuja said in a news release. “Houston remains the center of gravity where capital, operating expertise, and execution come together to make that transition investable.”

The Houston office will focus on four energy verticals:

  • Energy systems such as nuclear and geothermal
  • Energy supply chains
  • Energy-transition fuel and technology
  • Traditional energy
“We are making a committed investment in Houston because we believe the infrastructure powering AI, defense, and energy transition — from nuclear to rare-earth technology — represents the next secular cycle of value creation,” Jerry Serowik, head of Cohen & Co. Capital Markets, added in the release.

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This article originally appeared on EnergyCaptialHTX.com.

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