Houston Technology Center founder dies, leaves legacy of innovation

saying goodbye

Paul Frison, the founder of the Houston Technology Center, has died. Photo via dignitymemorial.com

The Houston innovation ecosystem is mourning the loss of one of its early leaders, Paul Frison, who died on September 5. He was 87.

A long-time Houston businessman, Frison founded the Houston Technology Center in 1999 and served as its CEO and president. The organization evolved into Houston Exponential several years ago. Frison remained active within Houston innovation until 2020.

“Paul Frison was a visionary and energetic leader who always presented a positive outlook on what the Houston technology entrepreneurship community could become," Brad Burke, associate vice president for industry and new ventures at Rice University's Office of Innovation, remembers. "He was one of the pioneers in the community who established the Houston Technology Center as one of the early leaders of the Houston ecosystem. I admired how he helped launch the ecosystem and created the platform for many others to build upon.”

Prior to HTC, he served in various executive roles at American Hospital Supply, LifeMark, ComputerCraft, and LifeCell, spending the last 50 of his years in Houston. Born in Glendale, California, he served in the Unites States Coast Guard.

Blair Garrou, co-founder and managing director of Mercury Fund, says Frison was his first boss and mentor in the tech and entrepreneurship sector.

“When people look back to how the Houston tech community was founded, it starts with Paul Frison," Garrou says. "Paul had run multiple companies and I was lucky to have him as CEO when I worked for him at the Houston Technology Center. He quickly became a mentor, and over time, a good friend and confidant. I have Paul to thank for launching my career in tech and venture capital.

"My favorite quote of Paul’s was, 'Do not confuse effort with results,'” Garrou continues. "Despite his results-driven work ethic – which was legendary — Paul was also deeply-rooted in family and faith, and has been a role model for me over my entire professional life.”

He is preceded in death by his wife, Barbara, and his grandson, Christian David Elders. He is survived by his daughters Maryanne Elders and Jill Cortez and their families, including grandchildren Matthew Elders, Laney Elders, Max Cortez, Jake Cortez, and Sofie Cortez.

A celebration of life will be held for Frison on September 16 at 1 pm at Second Baptist Church, with a reception following in the Deacon’s Parlor. More details are available online. In lieu of flowers, Frison's wishes were for for donations to Second Baptist Church to be made in his honor.

Originally expected to raise $150 million, Mercury's latest fund is the largest raised to date. Photo via mercuryfund.com

Houston-based VC secures oversubscribed $160M fund for early-stage startups

show me the money

A Houston venture capital firm has announce big news of its latest fund.

Mercury, founded in 2005 to invest in startups not based in major tech hubs on either coast, closed its latest fund, Mercury Fund V, at an oversubscribed amount of $160 million. Originally expected to raise $150 million, Fund V is the largest fund Mercury has raised to date.

“We are pleased by the substantial support we received for Fund V from both new and existing investors and thank them for placing their confidence in Mercury,” Blair Garrou, co-founder and managing director of Mercury Fund, says in a news release. “Their support is testament to the strength of our team, proven investment strategy, and the compelling opportunities for innovation that exist in cities across America.”

The fund's limited partners include new and existing investors, including endowments at universities, foundations, and family offices. Mercury reports that several of these LPs are based in the central region of the United States where Mercury invests. California law firm Gunderson Dettmer was the fund formation counsel for Mercury.

Fresh closed, Fund V has already made investments in several companies, including:

     
  • Houston-based RepeatMD, a patient engagement and fintech platform for medical professionals with non-insurance reimbursed services and products
  • Houston and Cheyenne Wyoming-based financial infrastructure tech platform Brassica, which raised its $8 million seed round in April
  • Polco, a Madison, Wisconsin-based polling platform for local governments, school districts, law enforcement, and state agencies
  • Chicago-based MSPbots, a AI-powered process automation platform for small and mid-sized managed service providers

Mercury's investment model is described as "operationally-focused," and the firm works to provide its portfolio companies with the resources needed to grow rapidly and sustainably. Since 2013, the fund has contributed to creating more than $9 billion of enterprise value across its portfolio of over 50 companies.

“Over the past few years there has been a tremendous migration of talent, wealth and know-how to non-coastal venture markets and this surge of economic activity has further accelerated the creation of extraordinary new companies and technology," says Garrou. "As the first venture capital firm to have recognized the attractiveness of these incredible regions a dozen years ago, we are excited to continue sourcing new opportunities to back founders and help these cities continue to grow and thrive.”

A Houston fintech startup is aiming to modernize banking and investing — and has received fresh funding to do it. Photo via Getty Images

Houston fintech startup raises $8M seed round led by local VC

fresh funds

A Houston startup has raised millions for its fintech platform — and the company didn't have to go very far to find its lead investor.

Brassica Technologies Inc. closed its seed round at $8 million with Houston-based Mercury Fund leading the round. Valor Equity Partners, Long Journey Ventures, NGC Fund, Neowiz, Broadhaven Ventures, Armyn Capital, VC3DAO, Alpha Asset Management (Korea), and other global FinTech investors participated in the round as well.

The startup's platform has "institutional-grade solutions for the new era of private investing and alternative assets," per the release. Serving the alternative assets industry, Brassica's tools can easily integrate with any operating system to provide proprietary technology and unique regulatory licenses. The technology aims to modernize key banking and investing infrastructure to help enterprises safely grow their business and protect their customer assets.

With its "investment infrastructure as a service" model, Brassica was co-founded in 2021 by two familiar faces in Houston's fintech scene. CEO Youngro Lee and CTO Bob Dunton were behind NextSeed, a crowdfunding platform that allowed businesses to raise investment funding online. The startup was acquired in 2020 by Republic, where Lee currently serves as executive vice president and head of Asia.

“The future of finance will depend on the ability of trustworthy institutions to provide secure and seamless transitions between traditional financial services and web3 innovations while complying with strict regulations and still providing great customer experience,” says Lee in the news release.

“Today’s infrastructure solutions for alternative assets are often cobbled together through multiple incompatible vendors in a complex regulatory environment, which often creates unreasonable risk, errors, and single points of failure for market participants," he continues. "We started Brassica to address this fundamental problem and provide solutions to enable innovators in both traditional and web3 industries to build properly within a constantly evolving global regulatory framework.”

Along with the seed round news, the company has announced that Brassica Trust Company, its wholly-owned subsidiary, has received a Trust Charter by the Wyoming State Banking Board.

“The revolution of the private markets is here, and it is clear that the traditional, legacy infrastructure currently in place is not designed for the present and future investment world,” says Blair Garrou, managing director at Mercury Fund, in the release. “Brassica’s API-forward, institutional grade solutions make investing in private and digital assets more trustworthy, compliant, and secure than ever before, further bridging the gap between the worlds of traditional and decentralized finance. Their highly qualified and experienced senior business, legal, and technology executive team makes Brassica well-positioned to usher in this new era of alternative investments. We are proud to support Brassica on their ongoing mission to democratize finance globally.”

The company plans to use the funding to grow its product, engineering, business development, and customer success teams, per the news release, as well as develop a trust operations team in Wyoming. Current leadership includes former execs from Republic, Cleary Gottlieb, Kirkland Ellis, Morgan Stanley, Custodia Bank, LedgerX, Prime Trust, JP Morgan Chase, and M1 Finance.

Youngro Lee has announced funding for his latest fintech endeavor. Photo courtesy

If you feel like it's hard to find venture capitalists in Houston, you wouldn't be wrong, according to this Houston investor. Photo via Getty Images

Houston investor outlines how rare VCs are in Houston — and how to find them

guest column

As a venture capitalist and former startup founder living in Houston, I get asked a lot about the best way to find and connect with a venture capitalist in Houston. My usual advice is to start with a list, and reach out to everyone on that list. But no one has a comprehensive list. In fact, VCs are such a quiet bunch that I’ve yet to meet someone who personally knows everyone on this proverbial list.

So, I got together with a couple of VC friends of mine, and we put together our own Houston venture capitalist list.

There are, by our count, 11 active venture capital funds headquartered in Houston of any size and type, and outside of corporate venture capital and angel investors, there are 30 total venture capitalists running funds.

Houston has always been quite thin on the VC fund front. I’ve jokingly introduced myself for a while as “one of the 13 venture capitalists in Houston.”

Let’s put this scale in some brutal perspective. With 7.2 million people in the Greater Houston Metro Area, the odds of finding a partner level active venture capitalist in Houston is about 1 in 240,000, if you take a most expanded definition of venture capitalist that might come down to 1 in 100,000. We’re the fifth largest metropolitan area in the country with a tremendous economic engine; there is a ton of capital in Houston, but it’s residing in things like institutional fixed income and equities, real estate, wealth management, corporate, private equity, family office, energy and infrastructure Basically, mostly everywhere but in venture capital funds for tech startups.

By comparison, there are almost as many Fortune 500 CEOs in Houston — 24, by our count — as venture capitalists and fewer venture capitalists than Fortune 1000 CEOs, of which there are 43. That means running into a VC in the checkout line at HEB is about as rare as running into the CEO of CenterPoint, ConocoPhillips, or Academy. In fact, as there are 115 cities in the Greater Houston area, you are three times more likely to be a mayor in Greater Houston Area than a partner at an investor at a VC firm, and more likely to be a college or university president. While we’re at it, you’re 400 times more likely to be a lawyer, 250 times more likely to be a CPA, and over 650 times more likely to be a medical doctor.

Our 30 venture capitalists in the Greater Houston Area are spread across 20 firms and all major venture sectors and stages. Venture capitalist is defined for this list as a full time managing director or partner-level investment professional actively running a venture capital fund with limited partners, currently investing in new venture capital deals from their fund from seed to growth stage, and residing in the Greater Houston Metro area.

To get to 31 we added in a couple of people running venture set asides for PE funds, and a number who work from Houston for funds with no office here. We excluded CVCs, as the decision making is more corporate than individual and rarely includes the committed fund and carried interest structure that defines venture capital, and excluded professionals at angel networks, accelerators, and seed funds that provide investment, but don’t manage conventional venture capital funds, as well as PE funds that do the occasional venture deal. We might be able to triple the number if we include venture capitalists at any professional level, and add in those professionals at PE and angel and seed funds, and corporate venture capital teams who are actively investing. But we’ll get to those other sources of funding in the next list.

The 11 venture capital funds headquartered in Houston are: Mercury, Energy Transition Ventures (my fund), Montrose Lane (formerly called Cottonwood), Texas Medical Center Venture Fund, Artemis, New Climate Ventures, Fitz Gate Ventures, Curate Capital, Knightsgate Ventures, Amplo Ventures,and First Bight Ventures.

Another half a dozen firms have a partner level venture capital investor here, but are headquartered elsewhere: Energy Innovation Capital, Decarbonization Partners, 1984 Ventures, Altitude Ventures, Ascension Ventures, Moneta Ventures, and MKB & Co. Two others, CSL Ventures and SCF Partners, are local private equity funds with a venture capital partner in Houston and a dedicated allocation from a PE fund.

Culling these for partner or managing director level currently in Houston, in alphabetical order by first name, LinkedIn profile and all.

We may have missed a couple of VCs hiding in plain sight, as venture capital is a pretty dynamic business.

VCs are just rare. And yes, perhaps more rare in Houston than in California. Something less than 1 in 100 VCs in the country live in Houston. Across the US there are somewhere around 1,000 to 2,000 active venture capital firms, and maybe another 1,000 to 2,000 active US based CVCs — so, plus or minus maybe at most 4,000 to 5,000 currently active partner level venture capitalists in the country excluding CVC professionals (active VCs and VC funds are really hard to count).

Perhaps in the most stunning statistic, the 7,386 elected state legislators in the US today outnumber the total number of American venture capitalists. Luckily for startup founders, the venture capitalists are more likely to return your phone call.

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Neal Dikeman is a venture capitalist and seven-time startup co-founder investing out of Energy Transition Ventures. He’s currently hosting the Venture Capital for First Time Founders Series at the Ion, where ETV is headquartered.

This week's roundup of Houston innovators includes Craig Ceccanti of T-Minus Solutions, Katie Eick of Rockin' Pets, Rollin' Vets, and Blair Garrou of Mercury. Photos courtesy

3 Houston innovators to know this week

who's who

Editor's note: In this week's roundup of Houston innovators to know, I'm introducing you to three local innovators across industries — from venture capital to software — recently making headlines in Houston innovation.


Craig Ceccanti, founder and CEO of T-Minus Solutions

Words of wisdom from a founder who's done this all before. And then again. And again. Photo courtesy of T-Minus Solutions

After starting a company or two — or three — Craig Ceccanti has some observations on his own entrepreneurial journey. He also has some hard lessons learned, and he shared four of them in a guest column for InnovationMap.

"I’m not immune to making mistakes," he writes. "As a serial entrepreneur and having started, led, and mentored various successful companies, I have made some mistakes and have been lucky enough to learn from them." Read more.

Katie Eick, founder and CEO of Rockin' Pets, Rollin' Vets

Katie Eick, founder and CEO of Rockin' Pets Rollin' Vets joins the Houston Innovators Podcast to discuss her company's growth. Photo courtesy of Rollin' Vets

For years, Dr. Katie Eick wanted to provide mobile veterinary care for her patients, but the technology wasn't where it needed to be. She took a gamble and bought her first truck in 2016 as ridesharing and mobile ordering took off. A new business of convenience was booming, before blasting off again amid the pandemic.

Now, the founder and CEO of Rockin' Pets, Rollin' Vets says she's got the equipment, the market demand, and a $5 million round of investment to expand her business model.

The other challenge Eick says she faced early on was a misconception that mobile vet care was limited to vaccinations.

"We provide the highest level of veterinary care — right in your driveway," Eick says on this week's episode of the Houston Innovators Podcast, explaining how each of her trucks — she now has five — have the capability to provide all sorts of treatment. Read more.

Blair Garrou, founder and managing partner of Mercury

Blair Garrou will be recognized as the 2022 Trailblazer Award recipient at the Houston Innovation Awards Gala on November 9. Photo courtesy

The name Blair Garrou is quite familiar to most within Houston's startup and innovation ecosystem. As co-founder of Mercury, which launched in 2005, he's seen the city's tech world expand tenfold.

"Although we are in the midst of a recession, Houston continues to grow in three key industrial sectors of innovation – EnergyTech/ClimateTech, HealthTech, and SpaceTech. Our city has the opportunity to be a national leader in each of these sectors, and drive tremendous job growth in the future," he tells InnovationMap.

Garrou was nominated and selected by a group of judges to be the 2022 Trailblazer Award recipient, and will be honored at the Houston Innovation Awards Gala on November 9. Read more.

Blair Garrou will be recognized as the 2022 Trailblazer Award recipient at the Houston Innovation Awards Gala on November 9. Photo courtesy

2022 Trailblazer Award recipient named for Houston Innovation Awards

paving the way

In less than a month, InnovationMap and Houston Exponential will honor dozens of movers and shakers within the Houston innovation community at the 2022 Houston Innovation Awards — and the first award recipient has officially been named.

Blair Garrou, managing director and founder of Houston-based venture capital firm Mercury, has been named the 2022 Trailblazer Award honoree. This award was established to honor a Houston innovation leader and advocate who's making a lasting impact on the Houston innovation community.

"I am very honored to be nominated and named the Trailblazer Award recipient. As many of us who contribute to Houston’s innovation community know, it’s a decades-long commitment," Garrou says.

Last year, the Trailblazer Award was introduced and honored Barbara Burger, former president of Chevron Technology Ventures. Garrou is the second individual to receive the recognition.

"This award is even more special for me since it’s the year after my good friend and colleague, Barbara Burger, was named as the inaugural award winner," he tells InnovaitonMap. "Barbara is a trailblazer for our tech ecosystem in so many ways, especially around diversity and inclusion. Her leadership has provided a framework for me, Mercury, and other leaders and organizations to continue growing Houston’s tech ecosystem in an inclusive, sustainable manner."

Mercury, founded in 2005 by Garrou and Dan Watkins, is an early-stage venture capital organization focused on software technology across the country — particularly focused on middle America or "fly-over" states. According to its website, the VC has created over $9 billion of value within is investment portfolio.

In addition to Mercury, Garrou helped launch and was the director of operations for the Houston Technology Center and led the formation of the Houston Angel Network. He also serves in board and/or advisory roles for The Artemis Fund, DivInc, Houston Exponential, HTX Impact Fund, UTHealth, and more.

"The main purpose of any innovation ecosystem is to help entrepreneurs succeed. These communities need leaders, feeders and instigators," says Scott Gale, executive director of Halliburton Labs and 2022 awards judge. "Blair transcends all of these distinct and critical roles for Houston."

Garrou will be honored among the finalists and winners at the Houston Innovation Awards Gala on November 9 at the Ion. Buy tickets now. For sponsorship information, email Chris Buckner at cbuckner@gowcompanies.com

"So many tiles in the mosaic of Houston’s Innovation Ecosystem have Blair’s fingerprints on them," Gale continues. "The earliest echoes of his influence include the Houston Technology Center (a pre-cursor in many ways to Houston Exponential) and the Houston Angel Network. Now decades later his influence continues to reverberate as he continues to be that first believer that Houston needed and that startups are so often looking for. A trailblazer in every sense of the word."

A brief Q&A with this year's honoree:

Houston's innovation ecosystem has evolved significantly since you founded Mercury in 2005. How would you describe your impact on that growth and evolution?

I’ve been helping to grow Houston’s tech ecosystem since 1999, when I joined the Houston Technology Center. Working at HTC, launching the Houston Angel Network, and then working at Genesis Park, gave me a foundation of venture experience, a network, and a community-oriented framework that helped guide my next twenty years. I was greatly inspired by the leaders of those organizations and how they gave back to the Houston community. I hope that my efforts have inspired other tech leaders to give of themselves, while they work on their own businesses, so that Houston can continue to reach its true potential.

​What excites you most about Houston's future as an innovation community?

The best is yet to come. When HX was formed in 2017, VC investment in Houston was less than $300 million per year. In 2021 that figure grew to over $2 billion. Over the last five years, our city has had major growth in almost all areas that matter for a tech ecosystem – the launch of accelerators and coworking centers, tech talent migration, venture capital investment, and venture capital fund formation. Although we are in the midst of a recession, Houston continues to grow in three key industrial sectors of innovation – EnergyTech/ClimateTech, HealthTech, and SpaceTech. Our city has the opportunity to be a national leader in each of these sectors, and drive tremendous job growth in the future.

What’s your favorite part of your role working with startup founders and other innovators?

I love helping founders navigate the ups and downs of the startup lifecycle. From providing founders frameworks to help grow their business, to taking midnight calls to “walk them off the ledge” of anxiety, my job is to be present and accountable for founders and truly advocating for their success.

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Houston startups win NASA funding for space tech projects

fresh funding

Three Houston startups were granted awards from NASA this month to develop new technologies for the space agency.

The companies are among nearly 300 recipients that received a total agency investment of $44.85 million through the Small Business Innovation Research (SBIR) and Small Business Technology Transfer (STTR) Phase I grant programs, according to NASA.

Each selected company will receive $150,000 and, based on their progress, will be eligible to submit proposals for up to $850,000 in Phase II funding to develop prototypes.

The SBIR program lasts for six months and contracts small businesses. The Houston NASA 2025 SBIR awardees include:

Solidec Inc.

  • Principal investigator: Yang Xia
  • Proposal: Highly reliable and energy-efficient electrosynthesis of high-purity hydrogen peroxide from air and water in a nanobubble facilitated porous solid electrolyte reactor

Rarefied Studios LLC

  • Principal investigator: Kyle Higdon
  • Proposal: Plume impingement module for autonomous proximity operations

The STTR program contracts small businesses in partnership with a research institution and lasts for 13 months. The Houston NASA 2025 STTR awardees include:

Affekta LLC

  • Principal investigator: Hedinn Steingrimsson
  • Proposal: Verifiable success in handling unknown unknowns in space habitat simulations and a cyber-physical system

Solidec and Affekta have ties to Rice University.

Solidec extracts molecules from water and air, then transforms them into pure chemicals and fuels that are free of carbon emissions. It was co-founded by Rice professor Haotian Wang and and was an Innovation Fellow at Rice’s Liu Idea Lab for Innovation and Entrepreneurship. It was previouslt selected for Chevron Technology Ventures’ catalyst program, a Rice One Small Step grant, a U.S. Department of Energy grant, and the first cohort of the Activate Houston program.

Affekta, an AI course, AI assistance and e-learning platform, was a part of Rice's OwlSpark in 2023.

Houston energy tech startup Molecule closes series B funding round

Big Bang

Houston-based energy trading risk management (ETRM) software company Molecule has completed a successful series B round for an undisclosed amount, according to a July 16 release from the company.

The raise was led by Sundance Growth, a California-based software growth equity firm.

Sameer Soleja, founder and CEO of Molecule, said in the release that the funding will allow the company to "double down on product innovation, grow our team, and reach even more markets."

Molecule closed a $12 million Series A round in 2021, led by Houston-based Mercury Fund, and has since seen significant growth. The company, which was founded in 2012, has expanded its customer base across the U.S., U.K., Europe, Canada and South America, according to the release.

Additionally, it has launched two new modules of its software platform. Its Hive module, which debuted in 2022, enables clients to manage their energy portfolio and renewable credits together in one scalable platform. It also introduced Elektra, an add-on for the power market to its platform, which allows for complex power market trading.

"Four years ago, we committed to becoming the leading platform for energy trading," Soleja said in the release. "Today, our customers are managing complex power and renewable portfolios across multiple jurisdictions, all within Molecule.”

Molecule is also known for its data-as-a-lake platform, Bigbang, which enables energy ETRM and commodities trading and risk management (CTRM) customers to automatically import trade data from Molecule and then merge it with various sources to conduct queries and analysis.

“Molecule is doing something very few companies in energy tech have done: combining mission-critical depth with cloud-native, scalable technology,” Christian Stewart, Sundance Growth managing director, added in the statement.

“Sameer and his team have built a platform that’s not only powerful, but user-friendly—a rare combination in enterprise software. We’re thrilled to partner with Molecule as they continue to grow and transform the energy trading and risk management market.”

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This article originally appeared on EnergyCapitalHTX.com.

Rice University professor earns $550k NSF award for wearable imaging tech​

science supported

Another Houston scientist has won one of the highly competitive National Science Foundation (NSF) CAREER Awards.

Lei Li, an assistant professor of electrical and computer engineering at Rice University, has received a $550,000, five-year grant to develop wearable, hospital-grade medical imaging technology capable of visualizing deep tissue function in real-time, according to the NSF. The CAREER grants are given to "early career faculty members who demonstrate the potential to serve as academic models and leaders in research and education."

“This is about giving people access to powerful diagnostic tools that were once confined to hospitals,” Li said in a news release from Rice. “If we can make imaging affordable, wearable and continuous, we can catch disease earlier and treat it more effectively.”

Li’s research focuses on photoacoustic imaging, which merges light and sound to produce high-resolution images of structures deep inside the body. It relies on pulses of laser light that are absorbed by tissue, leading to a rapid temperature rise. During this process, the heat causes the tissue to expand by a fraction, generating ultrasound waves that travel back to the surface and are detected and converted into an image. The process is known to yield more detailed images without dyes or contrast agents used in some traditional ultrasounds.

However, current photoacoustic systems tend to use a variety of sensors, making them bulky, expensive and impractical. Li and his team are taking a different approach.

Instead of using hundreds of separate sensors, Li and his researchers are developing a method that allows a single sensor to capture the same information via a specially designed encoder. The encoder assigns a unique spatiotemporal signature to each incoming sound wave. A reconstruction algorithm then interprets and decodes the signals.

These advances have the potential to lower the size, cost and power consumption of imaging systems. The researchers believe the device could be used in telemedicine, remote diagnostics and real-time disease monitoring. Li’s lab will also collaborate with clinicians to explore how the miniaturized technology could help monitor cancer treatment and other conditions.

“Reducing the number of detection channels from hundreds to one could shrink these devices from bench-top systems into compact, energy-efficient wearables,” Li said in the release. “That opens the door to continuous health monitoring in daily life—not just in hospitals.”

Amanda Marciel, the William Marsh Rice Trustee Chair of chemical and biomolecular engineering and an assistant professor at Rice, received an NSF CAREER Award last year. Read more here.

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