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

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.”

This week's roundup of Houston innovators includes Youngro Lee of Brassica, Anu Puvvada of KPMG Studio, and Brock Murphy of Parent ProTech. 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 corporate innovation to fintech — recently making headlines in Houston innovation.


Youngro Lee, founder of Brassica

Youngro Lee joins the Houston Innovators Podcast to discuss his latest endeavor on his mission to democratize investing. Photo courtesy

Brassica Technologies, a fintech infrastructure company that's providing a platform for alternative assets, is just the next step in his career in using tech to democratize finance. The idea came from Lee's experience as a startup founder and fintech exec — first at NextSeed and then at Republic, which acquired NextSeed two years ago.

"The reason why I thought this was what I wanted to focus on next was exactly because it was an issue I struggled with as a founder of NextSeed," Lee says on the show. "The backend was always an issue. There's not one single vendor that we felt really understood our business, was doing it efficiently, or enabled us to deliver those services to our end clients."

Lee shares more about the future of Brassica, including the challenges he's facing within regulation and the state of fintech as a whole, on the podcast. He also weighs in on how he's seen the Houston innovation ecosystem grow and develop alongside his own entrepreneurial journey. Read more.

Anu Puvvada, KPMG Studio leader

Anu Puvvada, KPMG Studio leader, shares how her team is advancing software solutions while navigating hype cycles and solving billion-dollar-problems. Photo courtesy of KPMG

In 2021, KPMG, a New York-based global audit, accounting, and advisory service provider, formed a new entity to play in the innovation space. The Houston-based team finds innovative software that benefit KPMG's clients across industries.

In an interview with InnovationMap, Anu Puvvada, leader of KPMG Studio, shares more about the program, its first spin out, and why she's passionate about leading this initiative from Houston.

"When you think about innovation as a whole, it's mired with risk and uncertainty," she says. "You never know if something's going to work or not. And part of what we have to do with any idea that we're building in the studio or anything that our clients are doing around innovation, we have to do as much as we can to mitigate that risk and uncertainty. And that's kind of what KPMG's wheelhouse is." Read more.

Brock Murphy, Parent ProTech co-founder

Brock Murphy launched Parent ProTech last fall. Photo via parentprotech.com

Houston-based Parent ProTech is a one-stop shop for parental education on technology and applications that their kids use.

“Our goal is to make everyone the best digital parent possible,” Brock Murphy, Parent ProTech co-founder, tells InnovationMap. “We understand technology and the role it plays in influencing the next generation. So we help parents when it comes to understanding the platforms, how to use them and how to unlock the parental controls that can be hidden, deeper into these platforms.”

Murphy — with co-founder Drew Wooten and creative director Joshua Adams — launched the platform in September 2022. Since then, Parent ProTech has made its mark through partnerships with schools in Texas. Read more.

Youngro Lee joins the Houston Innovators Podcast to discuss his latest endeavor on his mission to democratize investing. Photo courtesy

Houston entrepreneur furthers mission of democratizing finance with latest venture

HOUSTON INNOVATORS PODCAST EPISODE 186

After seeing through an exit of his first startup NextSeed, lawyer-turned-entrepreneur Youngro Lee took on a leadership role at the acquiring company, Republic. But his fintech innovation wheels kept turning.

"Brassica is, I personally consider, an extension and a national evolution of my original starting point," Lee says on the Houston Innovators Podcast, "which is basically to democratize finance so that everyone can have access to alternative assets as part of their wealth management investments or even for pleasure to just be able to invest in things they believe in."

Brassica Technologies Inc. is a fintech infrastructure company that's providing a platform for alternative assets, Lee explains. While investments in the public markets have platforms already, there are other investment opportunities that are managed in a less optimized way for investors.

Lee says there hasn't been a seamless solution created for the backend of these transactions, things like custody of those assets or transferring and keeping track of them.

"The reason why I thought this was what I wanted to focus on next was exactly because it was an issue I struggled with as a founder of NextSeed," Lee says on the show. "The backend was always an issue. There's not one single vendor that we felt really understood our business, was doing it efficiently, or enabled us to deliver those services to our end clients."

Lee says he has been working on addressing this gap in the market for the past two years under his role at Republic. After holding an executive position at the company as a whole, he currently oversees the Asian market as general partner of Republic Asia.

"We didn't know where this process was going to go. It was a corporate initiative to try to understand what the market needs — because we needed it," Lee says. "We quickly realized that this idea can be really big. Once we had that conclusion, that the problem we're trying to solve and the opportunity that the market presents is significant enough, we knew Brassica deserves to be its own company."

Shortly after that, Lee started reaching out to potential investors and raised an $8 million seed round to take the company out of stealth last month. Houston-based Mercury Fund led the round, with participation from 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.

Lee shares more about the future of Brassica, including the challenges he's facing within regulation and the state of fintech as a whole, on the podcast. He also weighs in on how he's seen the Houston innovation ecosystem grow and develop alongside his own entrepreneurial journey. Listen to the interview below — or wherever you stream your podcasts — and subscribe for weekly episodes.


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Houston founder taps into AI tech to create game-changing healthy eating platform

there's an app for that

After many years of living to eat, a large swath of American society is now facilitating a seismic shift to the healthier alternative, eating to live.

But here’s the rub: eating healthy is confusing, time consuming and, unfortunately, oftentimes pricey.

So, anyone that can come in and cut through the healthy eating machine can carve out a necessary niche in the marketplace.

Enter Houstonian Mark Semmelbeck, founder and CEO of A Better Meal, a platform created to help busy families plan healthy meals easier and to make gradual improvements to their health and well-being.

“My vision is to use rapidly expanding AI technology together with the knowledge and wisdom of an active community to take the stress out of meal planning and improving nutrition,” says Semmelbeck, a seasoned oil and gas executive with over 30 years of experience in founding companies. “While developing the technology for the app, my daughter gave me two beautiful grandkids who both have significant food allergies. Combine that with the fact I now have five cardiac stents and the significance of eating well while paying attention to the details has only grown in importance.”

All-in-one app

Billed as the one-stop meal planning companion, A Better Meal promises users no additional stress in finding the time to look for recipes, make grocery lists, or prepare meals quickly. Families need healthy options and to be able to provide them with ease and that’s where this new application comes in.

“So, when I started A Better Meal, I wanted to answer two questions or help people answer two questions,” says Semmelbeck. “That is, a family gets home in the evening and they don't want to order out and they don't want to go out to eat, they can open up this app and it can tell them, ‘here's three things that you can make with what you have on hand that you like.’ The other question is, 'how can I make small changes to how I prepare my food, how I cook it, the ingredients that I use and small changes that can make my meals healthier.'

“So that was where we started. And then as we built the app out, got a minimum viable product out to people and in front of them, and we started seeing more as they used the app, what they actually wanted when they went to a meal planning app, so the last year and a half has been a process of refining the app to really set what people want in a meal planning and recipe app.”

When users download the app, which is a subscription-based tool, it starts with the simple things like, how many meals they’d like per day, if they have preferences in the types of food that they like, and, of course, if they have allergies.

Custom experience

Semmelbeck says that users are able to personalize the app and set up their own dashboard with meal planning. You can also use the app to analyze a new recipe you'd like to try.

"You can take a picture of, say a recipe written down, and you'd like to put that in your own personal database, you can take a picture of it, and it will interpret it and bring that into the app and then the app will calculate the calories and macros and the macro nutrients that that meal has in it so that you can see that information also," he says.

When it comes to food and meal planning, inserting the word “healthy” invariably invokes a litany of personal definitions, up to and including weight loss.

That definition isn’t wrong by any means, but for A Better Meal, it’s all about introducing healthier options into people’s everyday lives. The app won’t give you a specific diet to follow, but if users prefer a vegetarian, keto or paleo diet, the app will recommend recipes that will satisfy those disciplines.

“For a lot of people that's a huge help,” says Semmelbeck. “They just want to cook and eat healthier. They may like to have vegetarian days mixed in, but don't know where to find those recipes, the app can suggest recipes for a vegetarian meal. It can also recommend that substituting whole wheat flour for conventional flour for making pancakes, things like that.”

And for those users who don’t necessarily have a planned out starting place for meal preparation, they can search the internet or social media for meal plans and diets and then simply import those into the app.

“We also use AI to analyze recipes that would satisfy a certain type of diet that you would want to participate in,” says Semmelback. “But I will say that one of the main things we want to do is help you make small changes because again diets are great and a lot of people are on them, but few people maintain them for long periods of time because, in general, they can be very restrictive.

“So, we really want our goal to be able to help you make small changes with the things that you like to eat to make them healthier. And again, by healthy, certain kinds of fats are good, others you want to limit, certainly processed foods you want to limit, you want to limit the amount of added sugar, and you want to limit the amount of processed foods. That’s why we have our own nutritionist that helps us with those diets.”

Starting a journey

Currently, the nutritionist for A Better Meal is working just for the app in general, but as the platform grows, users will be about to ask direct questions or at least have access to educational materials about specific health issues, and specific diet recommendations for various health use.

“The app has been live for about a year and early on, we found that what people said they want is much different than what they actually use in the app. So, a lot of our work has been over the past year modifying the app, the way you move around in the app," says Semmelback. "We really want to use AI in ways that are helpful to people.

"I personally have dealt with heart disease, and I know that my doctor recommends less added sugar and processed foods. And so those are the kinds of things that we are using AI to do to help take recipes that you might like and make substitutions to those recipes so that they fit the kind of lifestyle you want," he continues. "What we're really concentrating on is the recipe part of the app and improving those and allowing them to be adaptable to the desires of the users. Finally, we really want to push into more education and more gamification where it actually makes it fun to use the app.”

Promising Houston startup expands energy efficiency product to Middle East, Singapore

big move

NanoTech Materials has announced a big expansion for its business.

The Houston company, which created a roof coating using nanotechnology that optimizes energy efficiency, has partnered with Terminal Subsea Solutions Marine Service SP to bring its products to the Gulf Cooperation Council and Singapore. TSSM will become the exclusive distributor and partner of Houston’s NanoTech Materials products, which will include the Cool Roof Coat, Vehicular Coat, and Insulative Coat for the GCC countries and Singapore.

NanoTech Materials technology that ranges from roof coatings on mid- to low-rise buildings to shipping container insulation to coating trucks and transportation vehicles will be utilized by TSSM in the partnership. NanoTech’s efforts are focused on heat mitigation that can reduce energy costs, enhance worker safety, and minimize business risks in the process.

“Businesses and communities within the GCC and Singapore feel the impact of extreme temperatures and longer Summers more acutely than any other region in the world,” Mike Francis, CEO of NanoTech Materials, says in a news release. “We have an opportunity to make a real impact here through reduced energy load, cooler and safer working conditions, and a reduced carbon emissions output from the hottest, driest place on earth. We are incredibly excited to be partnering with our colleagues at TSSM to bring this powerful technology to the region.”

One of the areas that will benefit from this collaboration is the Middle East. The GCC region is characterized by a desert climate, which has average annual temperature reaching 107.6°F and summer peaks climbing as high as 130°F. The effects of these extreme conditions can be dangerous for workers especially with strict labor laws mandating midday work bans under black flag conditions, which can result in productivity losses as well.

NanoTech’s proprietary technology, the Insulative Ceramic Particle (ICP), will be used to address challenges in energy efficiency and heat control in the logistics and built environment sector. The platform can be integrated into many applications, and the impact can range from reducing greenhouse gas emissions to protecting communities that are wildfire-prone. The core of the technology has a lower conductivity than aerogels. It also has a “near-perfect emissivity score” according to the company. The NanoTech ICP is integrated with base matrix carriers; building materials, coatings, and substrates, which gives the materials heat conservation, rejection, or containment properties.

By combining the ICP into an acrylic roof coating, NanoTech has created the Cool Roof Coat, which reflects sunlight and increases the material's heat resistance. This can lower indoor temperatures by 25 to 45°F in single-story buildings and reduce the carbon emissions of mid to low-rise buildings. This can potentially equal energy savings from 20 percent up to 50 percent, which would surpass the average 15 percent savings of traditional reflective only coatings.

“This technology will have a huge impact on supporting the region's aggressive climate initiatives, such as Saudi Arabia’s Green Initiative, aiming to reduce carbon emissions by 278 million tons annually by 2030,” Jameel Ahmed, managing director at TSSM, says in the release. “The regional efforts to enhance climate action and economic opportunities through substantial investments in green technologies and projects are evident, and we are proud to be offering a product that can make a difference.”

NanoTech says its coating maintains its effectiveness over time and doesn’t suffer UV degradation issues which are helpful, especially in extreme weather conditions workers and businesses face in regions like the Middle East.

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This article originally ran on EnergyCapital.