Chevron taps startup for accelerator, nonprofit calls for diverse founders, and more Houston news

short stories

A Texas startup joins another Houston accelerator — and more Houston innovation news. Photo via Getty Images

Houston's summer has been heating up in terms of innovation news, and there might be some headlines you may have missed.

In this roundup of short stories within Houston startups and tech, a Houston accelerator program taps an Austin energy tech startup, a health tech company names a new C-level exec, and more.

Houston-founded startup raises $26M, names new CEO

Spruce has fresh funding and a new CEO. Photo via GetSpruce.com

Houston-founded multifamily service provider Spruce has raised a $26 million series B round of funding. Additionally, the company has named seasoned technology executive and board member Steven Pho as CEO. His previous experience includes Favor Delivery and RetailMeNot. Former CEO and founder, Ben Johnson, will transition to president.

“For the past two years, I’ve been able to guide Spruce as a board member and am honored to continue to do that as CEO,” says Pho in a news release. “Ben’s vision for Spruce ensured the company’s incredible growth to date, as well as the outsized positive impact on local economies and small businesses Spruce partners with across the country. I am excited to continue to partner with him as he transitions to President of the company. ”

The series B round was led by Sweat Equity Partners, with participation from SoftBank Corp., Mercury Fund, Fitz Gate Ventures, Seamless Capital, Raven One Ventures, and New Age Ventures. The funding will be used to grow the company's team to support expansion. Spruce reportedly plans to nearly double its headcount.

“We believe Spruce has established the right formula for working with local businesses, consumers, and rental properties alike,” says Manish Narula of SoftBank Corp. “We are looking forward to Spruce’s continued growth as it scales with this latest investment round.”

Spruce has raised $40 million to date, including its $8 million series A, which was led by Houston-based Mercury Fund in 2020. The company, which was founded as Apartment Butler, rebranded and relocated its HQ to Austin a couple years ago.

Texas tech startup joins Chevron Technology Ventures Catalyst Program

Houston startup aims to prepare the energy industry's future workforceFrom Rex Tillerson's thoughts on leadership and politics to Houston's role in the low-carbon energy movement, check out these powerful quotes from the 2020 KPMG Global Energy Conference. Getty Images

An innovative Austin company has doubled down on its acceleration and incubation activity in Houston.

Parasanti Inc. was selected to participate in the Houston-based Chevron Technology Ventures Catalyst Program. The company is a member of Greentown Houston and participated in Halliburton Labs. The company's edge computing technology provides secure solutions for remote work — such as off-the-grid oilfield operations.

Through CTV's Catalyst Program, which was founded in 2017 to help mature early-stage technology destined to impact the energy industry, Parasanti be tasked with further developing its software and expand into new projects.

“Parasanti is honored to receive support from a global energy technology leader like Chevron through this program,” says Carrie Horazeck, president of Parasanti’s commercial division, in a news release. “The CTV team has been incredibly helpful as we adapt our technology for the advanced energy solutions market. This program further demonstrates Chevron’s commitment to enabling the energy transition through technological advancement.”

Houston founders can apply for $100,000

Calling all diverse founders in Houston. Photo via Getty Images

Houston founders have until July 25 to apply for Founders First CDC's Job Creators Quest Grant, which will dole out $100,000 to support minority and underrepresented business owners throughout the state of Texas. The nonprofit is looking for Texas companies that:

  • are diverse-led (Black, indigenous, a person of color, LGBTQIA+, military veteran, a woman or located in a low to moderate income area)
  • employ two to 20 people
  • are located in the north, central east, or south Texas regions
  • have annual revenues between $100,000 to $3 million

The grant program was established to help business owners create premium wage jobs and reward diverse-led businesses throughout the state of Texas. Since its launch in early 2021, Founders First CDC has awarded more than $400,000 to minority and underserved business owners throughout the United States.

“With the rising cost of living, it can be challenging for families let alone business owners to stay afloat, particularly when it costs them more to provide goods and services for their consumers,” says Shaylon Scott, executive director of Founders First, in a news release. “We are happy to be able to invest money and resources in hard working business owners throughout Texas to help them thrive, even during uncertain economic times. Investing in diverse entrepreneurs is not only an impactful way to create jobs but is a pivotal way to close the general wealth gap in underserved communities.”

Qualified business owners, particularly those in the Dallas-Ft. Worth, Houston, Austin, and San Antonio markets can learn more and apply online.

Houston tech startup snags military award

This online learning platform just partnered up with a government entity. Photo via Getty Images

Houston-based UpBrainery Technologies, an online learning platform, received an award from the Department of Defense Education Activity as the premiere provider of Career Technology Education for 52 military middle Schools across the world. CTE provides middle school students with critical academic and technical skills, knowledge, and training.

"UpBrainery's skills-based training is delivered through the proprietary artificial intelligence-based technology, BrainLab," the company reports in a news release. "The blend of cutting-edge technology and skills training content provides an engaging experience for students delivered through TikTok-style videos, gamified learning, and augmented reality."

The agreement builds upon DODEA's vision of educating, engaging, and empowering military-connected student in order to ensure that "all school-aged children of military families are provided a world-class education that prepares them for post-secondary education and/or career success," the release continues.

Specific details on the partnership were not released.

Houston oncology company names new C-suite leader

Aravive Inc. has a new chief medical officer. Photo via Getty Images

A Houston-based late clinical-stage oncology company has a new C-level exec.

Aravive Inc. (Nasdaq: ARAV), which is developing targeted therapeutics to treat metastatic disease, announced its new chief medical officer, Dr. Robert B. Geller. A medical oncologist with over 30 years of drug development experience, Geller will lead all aspects of clinical and medical affairs, including commercialization preparedness and launch of novel therapeutics, according to a news release.

“I feel very fortunate and proud that I am able to join Aravive at this critical juncture, as the company nears key value inflection points,” says Geller in the release. “As a medical oncologist, I have devoted my career to caring for patients, and developing and commercializing new therapies for cancer patients. Based upon the clinical data to date on batiraxcept, I am convinced that batiraxcept has the potential to meet the high unmet medical needs of patients with advanced cancers, and potentially become a best-in-class medicine across a range of tumors, including ovarian, renal and pancreatic cancer, which require new treatment approaches.”

Geller was most recently senior vice president of medical affairs at California-based Coherus Biosciences. He's authored over 200 publications and abstracts and has served as reviewer for numerous medical journals.

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

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

spruced

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

Startups all over Houston and across industries are answering the call for tech solutions to COVID-19-caused issues from real estate and mental health to new software and services. Duy Do/Getty Images

9 Houston startups that are pivoting to provide COVID-19-related services

Startups to the rescue

From software to new services, several Houston startups are using this time of crisis to roll out new options for people living in the time of the COVID-19 crisis.

Last week, InnovationMap rounded up seven health tech startups providing health care solutions. This week, here are nine more startups that have reacted to the coronavirus with new tech solutions.

GotSpot

Reda Hicks, founder of GotSpot, has launched Rescue Spot to help out Houstonians dealing with the COVID crisis. Courtesy of GotSpot

Reda Hicks founded her company Gotspot — a digital tool that helps connect people with commercial space with people who need it — on the heels of Hurricane Harvey after seeing how hard it was for Houstonians to activate physical spaces in an emergency.

Now, in the face of another — albeit drastically different — situation, Hicks has created Rescue Spot to be that activation portal for specific COVID-19-related crisis needs.

"We are working with local community leaders to try to activate specific kind of space for emergency response," Hicks says in a Facebook interview with Bunker Labs, "so, restaurants turned into community kitchens, cold storage for perishables, storefronts that can be used as drive-by distribution centers, and places for people to house their pets while their owners are feeling overwhelmed and can't take care of their four-legged family members as well."

People with space or in need of a Rescue Spot can list their space or needs online.

SocialMama

Houston-based SocialMama uses its platform to connect mothers based on location, interests, and the things their children have in common. Courtesy of SocialMama

Houston-based SocialMama was founded in May of last year to connect mothers using machine learning that factors in vicinity, children's ages, shared motherly struggles, and more to create a support group digitally and socially. Now, the startup has sped up the release of a new feature so that users have more mental health resources during the pandemic.

Founder and CEO Amanda Ducach created SocialMama's expert program — an update to the app, which has been downloaded by over 15,000 users since launch — to connect moms to professionals specializing in everything from family medicine and mental health to career and personal safety. A portion of these experts join from Gravida, a post partum and return to work resource, according to a news release.

"Knowing someone is on the other side of the screen with a very similar story is truly comforting. The app considers all females, including those planning to become moms, those who are trying to conceive, those who have lost a child, etc. SocialMama is here for our community in a whole new way with the launch of our expert program," says Ducach in the release.

With mothers being tasked with educating and entertaining their children at home during the crisis on top of their regular jobs and duties, many are turning to SocialMama's online forum and app for support, ideas, and solidarity.

Accel Lifestyle

Accel's masks are made out of their specialty anti-bacteria fabric. Photo courtesy of Accel

While you might not usually think an activewear brand has anything to contribute to the fight against the coronavirus, you have to remember that Accel Lifestyle isn't a typical activewear brand. Founder Megan Eddings created the Prema® anti-bacterial fabric for an anti-stink feature in her clothing. That feature has another use: Preventing the spread of the disease.

Accel quickly pivoted her t-shirt-making supply chain to designing and sewing the masks. The reusable, washable masks are available online for individuals to purchase, but one Houston hospital system has made a huge purchase. Houston Methodist ordered 9,000 masks to be made for their hospital staff.

"The fact that a hospital system that is on the forefront of COVID-19 is choosing Accel Lifestyle to create PPE is profound and humbling," Eddings says in a press release. "I truly believe we're all in this together and we all have a role to play during this pandemic. If Accel Lifestyle can help flatten the curve in any way, then we're going to do it."

Predictive Solutions

A Houston startup has created a web tool for tracking the coronavirus. Pexels

Houston-based Predictive Solutions created a web application in March to give the residents of Harris County all the local information on COVID-19 in the palm of their hands — and now the tool has been expanded to the entire state.

The online map identifies nearby testing locations as well as indicates cases that have been self reported in the area. While not trying to be comprehensive, the website is trying to track trends with the disease.

"We developed the app to help streamline communication between the City of Houston, the healthcare community, aid organizations and Harris County residents, while mitigating the logistical nightmare of making sure presumed cases get tested," says Stewart Severino, co-founder and CEO of Predictive Solutions, in a news release. Read more.

Truss

Truss has modified its software to advance communications while hospitals are cracking down on visitors amid the coronavirus outbreak. Getty Images

Houston-based Truss usually focuses on digital community engagement, but Patrick Schneidau, CEO of the company, says he felt called to do something to help families separated due to strict emergency visitation rules at hospitals.

"You read all the stories of loved ones not being able to be together during this time," Schneidau, who is a member of InnovationMap's board, previously told InnovationMap. "That was the area we wanted to focus on."

Schneidau describes the software as a secure portal for small groups to interact via smart devices. Physicians can interface with family members via video chat or recorded messages, as well as answer any questions. Schneidau is looking for health care organizations to work with the technology so that patients and their doctors can have secure access to loved ones. Read more.

ChaiOne

Houston-based ChaiOne has launched a new tool that can help companies track supply chain delays resulting from COVID-19. Photo courtesy of ChaiOne

Houston-based ChaiOne recently announced the soft launch of its new software called Velostics — the "slack" for logistics that solves wait times and cash flow challenges in the supply chain and logistics industry. The digital logistics platform is set to aid the struggling supply chain as surging demands stretch suppliers, offering their platform free for 60 days.

"At ChaiOne we have a history of helping Houstonians whenever disaster strikes," says CEO and founder, Gaurav Khandelwal. "We created a disaster connect app during Hurricane Harvey for free that connected people with the resources they need. Velostics by pure happenstance happened to be ready for situations like [the coronavirus] when there's a lot of parties that need to collaborate."

Velostics results in an improved cash cycle for clients, cutting a 90-day settlement down to one day, along with an overhead reduction that reduces costs and improves output along with error reduction. The digital platform is specially engineered to reduce waste while keeping the supply chain running efficiently. Read more.

Umanity

Launched in Houston, Umanity's new tool aims to better connect nonprofits with supplies and volunteers amid the COVID-19 crisis. Photos via umanity.io

Umanity, which is a part of the Ion Smart and Resilient Cities Accelerator's first cohort, has created a philanthropic supply chain tool that's now available as an app or through desktop. The software can match and map local individual or nonprofit needs to organizations or volunteers, plus provide real-time analytics. During the coronavirus outbreak, they have mobilized its resources connecting supplies with nonprofits and volunteers with safe ways to help organizations that need it most during this crisis.

The company, which is working with several city of Houston officials to direct citizens the resources they need during the crisis, is creating a network of communities to efficiently provide them the resources they need. The centralized platform shows a complete picture of who needs help and who can help all on the same platform while measuring the real-time economic impact of donations and every volunteer hour.

"I started this company because I wanted to transition everyday acts of service into actual data-driven solutions," says Ryan-Alexander Thomas, CEO and founder of Umanity. "My goal is that during the next crisis, for example, hurricane season, if somebody needs something they have access to get it when they need it, not two years later or after the crisis." Read more.

Otso

Houston small businesses are struggling to pay their rent with doors closed and operations ceased — but where should the relief come from? Getty Images

When Josh Feinberg had the idea for his newest startup, Otso, he was hoping to remove the pointless burden of cash deposits required for new commercial and retail leases. But as the coronavirus pandemic began enacting stay-at-home mandates that forced small businesses to close their physical spaces, he had another idea.

Otso, with its financial partner Euler Hermes, provides landlords with an alternative to cash security deposits. While he first envisioned this tool for new leases, Feinberg created a system so that local businesses that are struggling to pay their rent can opt into this type of contract through an addendum to the lease. They can get back their cash deposits and use that capital now when times are tough.

"If we can get some liquidity back into the hands of the business, they have some a better chance of survival," Feinberg previously told InnovationMap.

Tenants or landlords can begin the process online. Feinberg recently joined the Houston Innovators Podcast to discuss the unprecedented state of commercial real estate and offer his advice for business owners. Click here to listen.

Spruce

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

Houston-founded, Austin-based Spruce, which has an office locally, has launched 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. Read more.

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 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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2 Houston startups selected by US military for geothermal projects

hot new recruits

Two clean energy companies in Houston have been recruited for geothermal projects at U.S. military installations.

Fervo Energy is exploring the potential for a geothermal energy system at Naval Air Station Fallon in Nevada.

Meanwhile, Sage Geosystems is working on an exploratory geothermal project for the Army’s Fort Bliss post in Texas. The Bliss project is the third U.S. Department of Defense geothermal initiative in the Lone Star State.

“Energy resilience for the U.S. military is essential in an increasingly digital and electric world, and we are pleased to help the U.S. Army and [the Defense Innovation Unit] to support energy resilience at Fort Bliss,” Cindy Taff, CEO of Sage, says in a news release.

A spokeswoman for Fervo declined to comment.

Andy Sabin, director of the Navy’s Geothermal Program Office, says in a military news release that previous geothermal exploration efforts indicate the Fallon facility “is ideally suited for enhanced geothermal systems to be deployed onsite.”

As for the Fort Bliss project, Michael Jones, a project director in the Army Office of Energy Initiatives, says it’ll combine geothermal technology with innovations from the oil and gas sector.

“This initiative adds to the momentum of Texas as a leader in the ‘geothermal anywhere’ revolution, leveraging the robust oil and gas industry profile in the state,” says Ken Wisian, associate director of the Environmental Division at the U.S. Bureau of Economic Geology.

The Department of Defense kicked off its geothermal initiative in September 2023. Specifically, the Army, Navy, and Defense Innovation Unit launched four exploratory geothermal projects at three U.S. military installations.

One of the three installations is the Air Force’s Joint Base San Antonio. Canada-based geothermal company Eavor is leading the San Antonio project.

Another geothermal company, Atlanta-based Teverra, was tapped for an exploratory geothermal project at the Army’s Fort Wainwright in Alaska. Teverra maintains an office in Houston.

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This article originally ran on EnergyCapital.

Houston investor calls for all angels to move the ecosystem forward

houston innovators podcast episode 233

One of the biggest components of a well-functioning startup ecosystem is inarguably access to capital, and Mitra Miller is dedicated to enhancing education around investment and growing Houston's investor base.

As vice president and board member of the Houston Angel Network, the oldest angel network in Texas and one of the most active angel networks in the country, Miller strives to provide guidance to new and emerging angel investors as well as founders seeking to raise money from them.

"Most founders have no idea or understanding of how investors think — we are not an ATM," Miller says on the Houston Innovators Podcast. "We are really partners you are getting married to for the next 5, 8, 10 years — sometimes longer. We need to bring your allies in every sense of the word."



HAN, a nonprofit, provides a unique opportunity for its members, as Miller explains. The group consists of around 100 individuals from all business backgrounds, so evaluating companies together brings more than just a wealth of capital — but also a wealth of knowledge.

"What HAN provides is access to investments," Miller says, adding that members have the benefit in evaluating companies together with people from different backgrounds. "Inside a group like HAN, we have extraordinary expertise."

In addition to educating both founders and investors in the process, Miller has dedicated herself to providing opportunities for students in low-income parts of Houston to learn about the startup world. Eight years ago, she founded Eagle Investors, an organization that provides a year-long program that culminates in a group of students participating as judges for the Rice Business Plan Competition.

"They spend a year learning about innovation, entrepreneurship, and investing by meeting local investors, entrepreneurs, and service providers. They go around Houston to get to visit and ... experience all of the ecosystem," Miller says.

At RBPC, the cohort of high school students evaluate the pitches and select a company to provide a $5,000 prize.

Miller herself has been a judge at RBPC for 20 years now, and she's had a front row seat for watching Houston develop as an ecosystem. She's seen the city make real progress, but has one major call to action.

"The piece that I am most aware of that I would like to see grow is activating more accredited investors who are interested in this asset class of early-stage companies and plugging in," Miller says. "They can also invest their time and knowledge to help companies in our region grow and scale."

Report: Houston secures spot on list of top 50 startup cities

by the numbers

A new ranking signals great promise for the growth of Houston’s startup network.

Houston ranks among the world’s top 50 startup cities on a new list from PitchBook, a provider of data and research about capital markets. In fact, Houston comes in at No. 50 in the ranking. But if you dig deeper into the data, Houston comes out on top in one key category.

The city earns a growth score of 63.8 out of 100 — the highest growth score of any U.S. city and the seventh highest growth score in the world. In the growth bucket, Houston sits between between Paris (64.4) and Washington, D.C. (61.7).

The PitchBook growth score reflects short-term, midterm, and long-term growth momentum for activity surrounding venture capital deals, exits, and fundraising for the past six years.

PitchBook’s highest growth score (86.5) goes to Hefei, a Chinese manufacturing hub for electric vehicles, solar panels, liquid crystal displays, home appliances, and Lenovo computers.

The overall ranking is based on a scoring system that relies on proprietary PitchBook data about private companies. The system’s growth and development scores are based on data related to deals, exits, fundraising and other factors.

Houston earns a development score of 34.1 out of 100, which puts it in 50th place globally in that regard. This score measures the size and maturity of a city’s startup network.

Topping the overall list is San Francisco, followed by New York City and Beijing. Elsewhere in Texas, Austin appears at No. 16 and Dallas at No. 36.

The ranking “helps founders, operators, and investors assess locations when deciding where to expand or invest,” says PitchBook.

“Network effects matter in venture capital: Investors get more than half of their deals through referrals, according to research led by Harvard professor Paul Gompers,” PitchBook goes on to say. “So it stands to reason that dealmakers should seek these networks out when deciding where to do business.”

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