Houston startup partners with nonprofit to launch $70M fund to support businesses in marginalized communities

funding for all

The Equitable Access Fund is designed to meet demand for business credit among small businesses, especially those run by women, military veterans, people with disabilities, and members of the BIPOC, Latinx, and LGBTQ communities. Photo via HelloAlice.com

Houston-based fintech startup Hello Alice and the nonprofit Global Entrepreneurship Network have teamed up to create a $70 million fund that’ll help enable access to credit for small businesses.

Initial funding for the Equitable Access Fund, which debuted today, comes from Wells Fargo. GEN, which helps people start and build businesses, will manage the fund. Hello Alice’s fintech platform offers credit, loans, and grants to U.S. small business owners.

The new fund will provide credit enhancements — such as loan guarantees, loan-loss reserves and cash-collateral deposits — to ease risks for financing partners and free up money for underserved small business owners who face credit challenges.

The fund’s financing partners include First National Bank of Omaha, which issues Hello Alice’s small business credit card, and certain participants in Hello Alice’s financing marketplace. Other partners include the Mastercard payment network and the Kauffman Foundation, a nonprofit that fosters entrepreneurship.

The fund is designed to meet demand for business credit among small businesses, especially those run by women, military veterans, people with disabilities, and members of the BIPOC, Latinx, and LGBTQ communities. Hello Alice data shows that only one-fourth of small business owners have applied for a business credit card, and 85 percent of those applications were rejected due to poor credit or lack of credit.

Through the Equitable Access Fund, small business owners will be able to obtain a business credit card, build their credit profile, and eventually qualify for traditional credit and lending products. The $70 million fund seeks to unlock as much as $1 billion in credit for thousands of small business owners.

“We’re looking forward to creating more partnerships and bringing more institutions on board to the fund to achieve the goal of equitable access to credit,” Elizabeth Gore and Carolyn Rodz, co-founders of Hello Alice, say in a news release.

Wells Fargo Foundation is backing the Equitable Access Fund.

“Small businesses are a critical contributor to the economy and to building generational wealth,” says Otis Rolley, president of the foundation. “We need to create more pathways for historically marginalized small businesses to grow and prosper.”

In conjunction with GEN and Hello Alice’s Equitable Access Program, small business owners will receive credit-building education and technical assistance through a tool called the Business Health Score. The tool, which Hello Alice launched in April 2023, supplies an overview of a business’ financial condition.

Hello Alice Co-Founders Carolyn Rodz and Elizabeth Gore announced their latest opportunity for founders from marginalized communities to access funding. Photos via helloalice.com

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DivInc is bringing another new accelerator program to Houston — this one is focused on clean energy. Photo via DivInc.com

Chevron, Microsoft back Houston-based clean energy program for BIPOC and female founders

ready to grow

A Texas-based accelerator is bringing its third diversity-focused program to Houston.

DivInc, a startup accelerator originating in Austin and established for people of color and women entrepreneurs, has announced that the title sponsors for the inaugural Clean Energy Accelerator are Chevron and Microsoft. The new program will join DivInc's existing accelerators — Women in Tech and Sports Tech — at the Ion.

"With Houston known as the energy capital of the world, DivInc has the opportunity to provide a pipeline of women, black, and latino-led high-growth, high-impact startups focused on clean energy," says Ashley DeWalt, DivInc Houston's managing director, in a news release. "We see this initiative ultimately driving a more diverse, equitable, and inclusive ecosystem within this clean energy transition sector for generations to come."

Applications for the Spring 2023 Clean Energy Accelerator are due today, February 10, according to the website. Startups accepted into the program should be led by BIPOC and women founders committed to working 10 to 15 hours per week during the 12 week program, which will start April 10.

The founders should be "working to shift the energy sector in the areas of clean energy production, energy storage and transmission, energy efficiency, carbon economy, and sustainable cities," per the release. In addition to the two title sponsors, the new program is also supported by Houston Premier Partners, J.P. Morgan Chase & Co., Verizon, The Ion, and Mercury.

"With a booming startup industry, a commitment to innovation, and a diverse workforce, Houston and organizations like DivInc are poised to play a vital leadership role and operate as a powerful force for energy progress," says Jim Gable, president of Chevron Technology Ventures, in the release.

The cohort, which will accept up to 10 companies, will work one-on-one with both the Microsoft and Chevron teams, as well as have access to DivInc's network of mentors and curriculum. Once the selected companies have completed the program, they will each receive $10,000 in non-dilutive seed funding.

"We are committed to enabling organizations in the clean energy transition while mindful of millions still without access to energy," said Darryl Willis, Corporate Vice President, Energy Industry at Microsoft. "This collaboration with DivInc and Chevron to support underserved entrepreneurs advancing the world's clean energy needs speaks to this climate commitment as well as diversity, equity and inclusion."

Companies with resources to spare should step up to help support small and minority-owned businesses. Photo via Getty Images

Houston expert: Now is the time to support BIPOC-owned small businesses

Guest column

It's clear that the pandemic continues to negatively impact many businesses, and chief among them small, minority-owned businesses. In fact, a study from late last year revealed that minority-owned organizations have been hit disproportionately hard – Black business owners experienced a 41 percent drop in business activity, while Latinx business activity dropped by 35 percent and Asian business activity dropped 26 percent.

Of course, COVID-19 is not the only obstacle that small and minority-owned businesses face. They are also contending with systemic social and economic injustices, civil and social unrest, as well as environmental events. In fact, the pandemic has further spotlighted these ongoing inequities in our communities.

In Houston, nearly 30 percent of startup companies are minority-owned, and studies indicate that Black neighborhoods have driven the majority of start-up growth during the pandemic. These small businesses and their owners have been in survival mode, using their skills, creativity, resources and capacities to keep their doors open and their businesses profitable — but this heavy burden should not fall on them alone.

After all, small businesses are the backbone of our economy. When they don't make it, our nation as a whole suffers: skyrocketing unemployment rates, reduced consumer spending and less optimistic long-term forecasts for all businesses, among other effects. But when they succeed, we all succeed.

Companies with resources to spare should step up to help support small and minority-owned businesses — and that's why last year Comcast created its initiative, Comcast RISE, to help these businesses resolve their challenges and find long-term success.

As part of the first wave of RISE — which stands for "Representation, Investment, Strength and Empowerment" — we gave eligible minority-owned small businesses located in Houston (and in four other U.S. cities severely impacted by COVID-19) the chance to apply for direct grants of $10,000. More than 700 small businesses received these grants, including more than 200 businesses based in the Houston area. Now, the second round of applications for RISE grants is open, and 100 lucky applicants will be chosen to each receive $10,000.

Two local businesses have already experienced the positive impact that these grants can provide. Ashley Gomez, 132 Design partner – a brand and web design company for small businesses – used their business' RISE grant to invest in technology and professional development for the staff. Since then, 132 Design has seen a 30 percent increase in revenue. Meanwhile, Cori Xiong, owner of the Houston-area staple Mala Sichuan Bistro, was able to pay off her extra business expenses associated with the pandemic, as well as invest in publicity and marketing efforts for her storefronts.

Here's what you need to know if you're a small business owner interested in applying for a grant. If your minority-owned business is eligible — that is, at least 51 percent minority-owned, independently owned and operated, registered as a business in the U.S., in operation for more than a year, and located in Harris or Fort Bend county— simply fill out the form on the Comcast RISE website between October 1 and 14, 2021.

We, at Comcast, are deeply committed to helping drive change and bolster the process of correcting social and economic injustices. The Comcast RISE program helps meaningfully impact and support the small businesses that are shaping our communities. At the end of the day, our economy's success is just part of the equation. It's on all of us to ensure equity, diversity, and inclusion for our communities.

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Vince Margiotta is the vice president at Comcast Business.

Ten Houston companies received funding from the Founders First CDC's Job Creators Quest Grant. Photo courtesy

Nonprofit awards 10 Houston companies over $30,000 in grant funding

founders first

A national nonprofit has granted $100,000 in funding to 31 companies across the state. Ten of the recipients are based in Houston.

Founders First CDC — an organization that supports diverse founder-led, revenue-generating businesses — named the winners of its new Job Creators Quest Grant this week. Over 600 Texas businesses applied, and the selected recipients represent industries from construction and manufacturing to STEM and healthcare, to hospitality, and more.

"The challenges of simply keeping the doors open have been amplified by an unforeseen obstacle – the pandemic. Now more than ever it takes commitment, perseverance and healthy funding to succeed, which is why I'm excited about Founders First CDC," says Texas State Senator and small business owner, Royce West, in a news release. "This organization is providing small businesses with wherewithal to create jobs, which in turn help sustain operations, achieve business goals and stimulate the economy."

Launched earlier this year, the Job Creators Quest Grant is funding businesses to help them retain and grow their workforce through the pandemic. Since its inception, the program has awarded more than $220,000 to minority and underrepresented business owners throughout the United States.

"We have observed many founders working more in their business than on their business. Our priority is to give entrepreneurs resources to grow while simultaneously becoming premium wage job creators within their community," says Shaylon Scott, executive director of Founders First CDC, in the release. "Investing in diverse entrepreneurs is an impactful way to drive job and wealth creation in underserved communities. The Job Creators Quest Grant is more than a dollar amount, it's a celebration of their success."

Eligibility requirements included the company's founder must be Black, indigenous, a person of color, LGBTQIA+, military veteran, woman or located in a low to moderate income area and be a for-profit company with annual revenues between $100,000 to $3 million. Grant winners will use the funds to help create and add 1-2 net new premium wage jobs in the next 12 months. The program was funded by a $1 million grant from the Rockefeller Foundation, along with Founders First CDC Capital Partners' recent $9 million series A.

The Houston companies that received funding were:

DM Electrical and Construction LLC - $10,000
Medley Inc. - $10,000
EFS GROUP PLLC - $2,500
AtWork Personnel Services - $2,500
Camellia Alise, LLC - $1,500
Flava Wings - $1,500
Oops Steam Cleaning - $1,500
The Body: A Home for Love - $1,500
TNR Accounting & Management Consulting, LLC - $2,500
Socium Solutions LLC - $2,500

The other Texas companies that received grant money were:

COCINA 54 (Austin) - $1,500
Laundris Corp (Austin) - $1,500
Center for Music Therapy, Inc. (Austin) - $1,500
Le Rouge Cuisine Food Company (Dallas) - $5,000
TDG Scientific (Dallas) - $5,000
SCENT & FIRE CANDLE COMPANY (Dallas) - $2,500
brittani (Dallas) - $2,500
Atmospheric Home Staging (Dallas) - $1,500
RD Adams Enterprise LLC dba ONE Elite Staffing (Dallas) - $1,500
Civil Pour (Dallas) - $1,500
Lalloon Marketing Group, LLC dba Imperium Surgical Partners (Dallas) - $1,500
WEST ONE PRODUCTS LLC (Fort Worth) - $1,500
Hooked On Code, LLC (Frisco) - $5,000
Hustle Clean (Frisco) - $5,000
PriceSenz LLC (Irving) - $1,500
R2R Palliative and Hospice Care LLC (Lewisville) - $1,500
Bernadette Davis Communications (Plano) - $1,500
Channel Source Inc (Southlake) - $5,000
KoderLabs (Trophy Club) - $1,500
Brisco Wheel Repair LLC DBA Alloy Wheel Repair of San Antonio (San Antonio) - $1,500

Here's your latest roundup of innovation news you may have missed. Shobeir Ansari/Getty Images

Google grants Houston founders funds, The Ion looks for artists, and more local innovation news

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The Houston innovation ecosystem is bursting at the seams with news, and for this reason, local startup and tech updates may have fallen through some of the cracks.

In this roundup of short stories within Houston innovation, the Comcast RISE program expands to grant more funds, Google names Houston-area recipients from its Black Founder Fund, The Ion is looking for artists to participate in a new initiative, and more.

Google cohort awards Black founders $100,000 each

Google has granted funds to two Houston companies. Photo via Pexels

DOSS and SOTAOG, two Houston-based startups, have received $100,000 each as a part of the second cohort of the Google for Startups Black Founders Fund, a $10 million initiative for Black founders. Originally reported to be a part of Google's accelerator early this summer, DOSS is a digital brokerage that uses tech to make homeownership more affordable, and SOTAOG is an enterprise solutions provider within the oil and gas and heavy industrial industries.

"The Google for Startups Black Founders Fund embodies our mission of helping underrepresented founders grow their businesses. We are excited to continue the fund and contribute funding to Black founders, with no strings attached. Black founders currently receive less than 1 percent of total VC funding," says Jewel Burks Solomon, head of Google for Startups US, in a news release. "We heard loud and clear from the 2020 fund recipients that Google for Startups and Goodie Nation have been crucial to their success not only through funding, but through community, mentorship, network connections and technical expertise."

Last year, Google for Startups awarded 76 Black-led startups up to $100,000 in non-dilutive funding, as well as technical support from tools and teams across Google, including as much as $120,000 in donated search Ads from Google.org and up to $100,000 in Google Cloud credits, according to the release.

In addition to the two companies from Houston, eight companies from Austin and Dallas were also chosen for the second program.

The Ion calls for local artists

The Ion is looking for local artists to create innovative window displays. Photo courtesy of The Ion

The Ion, a Midtown innovation hub that's owned and operated by Rice Management Company, is looking for local artists to work on two prominent display windows at the front of the newly renovated historic Sears building.

"As a nexus for creativity of many different kinds, The Ion welcomes Houston's talented artists to tap into their unique skill sets and diverse backgrounds to submit inventive proposals that will ultimately comprise two different art installations. Each installation will contribute to Houston's innovation ecosystem by inspiring the growing community of creators who will see the building's display windows on a daily basis," says Artistic Consultant Piper Faust in a news release.

The two art installations will reside for six months — from February to August of next year. The submissions will be evaluated by a team of experts identified by Rice Management Co. and Piper Faust. The budget for each project will be $20,000.

According to the release, the submissions are open to Houston-area artists and should be in line with The Ion's "vision and mission of accelerating innovation, connecting communities and facilitating partnerships to create growth and opportunity in Houston."

Artists can apply online until October 1 at 5 pm.

Comcast RISE announces additional $1 million for Houston founders

Comcast to dole out $1M in grants to BIPOC-owned small businesses in Houston

The Comcast RISE program will give out another batch of $10,000 grants to BIPOC-owned small businesses in Houston. Photo via Getty Images

The Comcast RISE Investment Fund, which announced funding for 100 small businesses in Houston earlier this year, has expanded to provide an additional $1 million in support. The program is focused on BIPOC-owned small businesses in Harris and Fort Bend Counties that have been in business for three or more years with 1 to 25 employees.

Eligible businesses can apply online at ComcastRISE.com beginning October 1 through October 14 for one of the one hundred $10,000 grants.

Houston startup wins $25,000

Day Edwards, founder and CEO of Church Space

Day Edwards, founder and CEO of Church Space, won $25,000 for her company. Photo courtesy of Church Space

Dallas-based Impact Ventures, a nonprofit startup accelerator focused on empowering women and communities of color, hosted its bi-annual event, The Startup Showcase. A Houston-based company, Church Space, took the top prize of $25,000.

Billed as the "Netflix of churches," Church Space originally started as a way to allow groups to rent spaces for worship. But, in light of the pandemic, the company is pivoted to launch Church Space TV, a streaming program that allows churches and ministries to stream worship services for free.

"It felt like the perfect opportunity to give churches a way to reach more people during the pandemic," Day Edwards, founder and CEO of Church Space, previously told InnovationMap. "This would create more impact than anything we could possibly offer at this time."

The company is also one of MassChallenge Texas's 2021 cohort.

Houston health care leader receives prestigious award

Dr. Peter Hotez, a leader in the development of Texas Children's and Baylor's COVID-19 vaccine construct, has been named the recipient of a prestigious award. Photo courtesy of TCH

Dr. Peter Hotez, Texas Children's Hospital Chair in Tropical Pediatrics, has been awarded the 2021 David E. Rogers Award. Hotez is co-director of the Center for Vaccine Development at Texas Children's Hospital and Professor of Pediatrics and Molecular Virology and dean of the National School of Tropical Medicine at Baylor College of Medicine.

The annual award, presented by the Robert Wood Johnson Foundation and the Association of American Medical Colleges, "honors a medical school faculty member who has made major contributions to improving the health and health care of the American people," according to a news release.

"I am thrilled to be honored with the David E. Rogers Award," Hotez says in the release. "As we continue this fight against COVID-19, having the additional support from the AAMC will amplify our efforts to improve public health nationally and globally."

The award will be presented to Dr. Hotez at the 2021 AAMC Awards Recognition Event on Wednesday, October 27.

Hotez is leading the development of Texas Children's and Baylor's COVID-19 vaccine construct, according to the release, and he has dedicated much of his time to vaccine advocacy efforts, countering rising antivaccine and anti-science sentiments in the United States while promoting vaccine diplomacy efforts globally.

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Houston team develops low-cost device to treat infants with life-threatening birth defect

infant innovation

A team of engineers and pediatric surgeons led by Rice University’s Rice360 Institute for Global Health Technologies has developed a cost-effective treatment for infants born with gastroschisis, a congenital condition in which intestines and other organs are developed outside of the body.

The condition can be life-threatening in economically disadvantaged regions without access to equipment.

The Rice-developed device, known as SimpleSilo, is “simple, low-cost and locally manufacturable,” according to the university. It consists of a saline bag, oxygen tubing and a commercially available heat sealer, while mimicking the function of commercial silo bags, which are used in high-income countries to protect exposed organs and gently return them into the abdominal cavity gradually.

Generally, a single-use bag can cost between $200 and $300. The alternatives that exist lack structure and require surgical sewing. This is where the SimpleSilo comes in.

“We focused on keeping the design as simple and functional as possible, while still being affordable,” Vanshika Jhonsa said in a news release. “Our hope is that health care providers around the world can adapt the SimpleSilo to their local supplies and specific needs.”

The study was published in the Journal of Pediatric Surgery, and Jhonsa, its first author, also won the 2023 American Pediatric Surgical Association Innovation Award for the project. She is a recent Rice alumna and is currently a medical student at UTHealth Houston.

Bindi Naik-Mathuria, a pediatric surgeon at UTMB Health, served as the corresponding author of the study. Rice undergraduates Shreya Jindal and Shriya Shah, along with Mary Seifu Tirfie, a current Rice360 Global Health Fellow, also worked on the project.

In laboratory tests, the device demonstrated a fluid leakage rate of just 0.02 milliliters per hour, which is comparable to commercial silo bags, and it withstood repeated disinfection while maintaining its structure. In a simulated in vitro test using cow intestines and a mock abdominal wall, SimpleSilo achieved a 50 percent reduction of the intestines into the simulated cavity over three days, also matching the performance of commercial silo bags. The team plans to conduct a formal clinical trial in East Africa.

“Gastroschisis has one of the biggest survival gaps from high-resource settings to low-resource settings, but it doesn’t have to be this way,” Meaghan Bond, lecturer and senior design engineer at Rice360, added in the news release. “We believe the SimpleSilo can help close the survival gap by making treatment accessible and affordable, even in resource-limited settings.”

Texas among 5 hardest working states and more innovation news to know

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Editor's note: As we look back at the top Houston innovation news for the first half of September, reports show that Texas is one of the hardest working states, while local startup activity has slowed down. Plus, exciting medical innovation advancements. Here are the most-read InnovationMap stories from September 1-14.

1. Texas is the 4th hardest working state in America, report finds

Texas is home to some of the hardest workers. Photo via Getty Images

It's no secret that Texans are hardworking people. To align with the recent Labor Day holiday, a new WalletHub study asserts that the Lone Star State is one of the five most hardworking states in America for 2025. The report ranked Texas the fourth most hardworking state this year, indicating that its residents are working harder than ever after the state fell into seventh place in 2024. Continue reading.

2. UH receives $1M grant to advance research on rare pediatric disorder

The Cynthia and George Mitchell Foundation has granted $1.1M to the University of Houston to support research on Usher Syndrome. Photo courtesy University of Houston.

The University of Houston has received a two-year, $1.1 million gift from the Cynthia and George Mitchell Foundation to advance research on a rare genetic disorder that can lead to both deafness and blindness in children, known as Usher Syndrome. The current grant will support the research of UH biomedical engineering professors Muna Naash and Muayyad Al-Ubaidi, who work in the Laboratory for Retinal Molecular and Cellular Biology and Gene Therapy in the Cullen College of Engineering. Continue reading.

3. Houston's surge in new startups cools since pandemic peak, study shows

Startup applications in Houston have dipped since their 2021 peak, even as national entrepreneurship hits record highs, according to a new report from The Kaplan Group. Photo via Getty Images.

Startup activity in the Houston metro area has dipped since its pandemic peak, according to a new study. Dating back to 2005, the volume of applications to form new businesses in the Houston area hit its highest level in 2021 (151,804). Since then, though, the application volume has fallen, according to the study, conducted by business debt collection agency The Kaplan Group. Continue reading.

4. TMC lands $3M grant to launch cancer device accelerator

Recent funding from CPRIT will help launch the new Accelerator for Cancer Medical Devices. Photo via TMC

A new business accelerator at Houston’s Texas Medical Center has received a nearly $3 million grant from the Cancer Prevention and Research Institute of Texas. The CPRIT grant, awarded to the Texas Medical Center Foundation, will help launch the Accelerator for Cancer Medical Devices. The accelerator will support emerging innovators in developing prototypes for cancer-related medical devices and advancing them from prototype to clinical trials. Continue reading.

5. 10 Houston billionaires make Forbes' list of richest Americans in 2025

Pictured: Nancy and Richard Kinder, the richest Houstonian, according to the Forbes 400. Photo by Michelle Watson/Catchlight Group

America's wealthiest billionaires are $1.2 trillion richer in 2025, bringing their collective worth to a staggering $6.6 trillion. And Houston's own Richard Kinder has become the richest billionaire in the city, according to the new Forbes 400. The Kinder Morgan chairman is the 11th richest Texas resident and ranks as the 108th richest American. Kinder also dethroned Tilman Fertitta to claim the title as the wealthiest Houstonian. The annual Forbes 400 list is a definitive ranking of the wealthiest Americans, using interviews, financial data, and documentation provided by billionaires and their companies. Continue reading.

Oxy's $1.3B Texas carbon capture facility on track to launch this year

gearing up

Houston-based Occidental Petroleum is gearing up to start removing CO2 from the atmosphere at its $1.3 billion direct air capture (DAC) project in the Midland-Odessa area.

Vicki Hollub, president and CEO of Occidental, said during the company’s recent second-quarter earnings call that the Stratos project — being developed by carbon capture and sequestration subsidiary 1PointFive — is on track to begin capturing CO2 later this year.

“We are immensely proud of the achievements to date and the exceptional record of safety performance as we advance towards commercial startup,” Hollub said of Stratos.

Carbon dioxide captured by Stratos will be stored underground or be used for enhanced oil recovery.

Oxy says Stratos is the world’s largest DAC facility. It’s designed to pull 500,000 metric tons of carbon dioxide from the air and either store it underground or use it for enhanced oil recovery. Enhanced oil recovery extracts oil from unproductive reservoirs.

Most of the carbon credits that’ll be generated by Stratos through 2030 have already been sold to organizations such as Airbus, AT&T, All Nippon Airways, Amazon, the Houston Astros, the Houston Texans, JPMorgan, Microsoft, Palo Alto Networks and TD Bank.

The infrastructure business of investment manager BlackRock has pumped $550 million into Stratos through a joint venture with 1PointFive.

As it gears up to kick off operations at Stratos, Occidental is also in talks with XRG, the energy investment arm of the United Arab Emirates-owned Abu Dhabi National Oil Co., to form a joint venture for the development of a DAC facility in South Texas. Occidental has been awarded up to $650 million from the U.S. Department of Energy to build the South Texas DAC hub.

The South Texas project, to be located on the storied King Ranch, will be close to industrial facilities and energy infrastructure along the Gulf Coast. Initially, the roughly 165-square-mile site is expected to capture 500,000 metric tons of carbon dioxide per year, with the potential to store up to 3 billion metric tons of CO2 per year.

“We believe that carbon capture and DAC, in particular, will be instrumental in shaping the future energy landscape,” Hollub said.

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This article originally appeared on our sister site, EnergyCapitalHTX.com.

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