Amid international VC decline, here's what Houston startups received investment, grant funding last quarter

seeing green

It's not been the easiest year to raise funding, but Houston startup founders managed to secure over $160 million in VC or grant funding last quarter. Photo via Getty Images

The second quarter of 2023 looked a lot like the first when it came to venture capital funding for Houston companies. The whole country — affected by inflation, geopolitical instability, and other factors — has seen a trying time for investment opportunities.

Houston's performance is far from unique. Globally, VC funding is down — a reported 18 percent from Q1 to Q2, per Crunchbase. Year over year, that's a 49 percent decrease from 2022's Q2.

According to InnovationMap reporting, 10 Houston-based, Houston-founded, or soon-to-be Houston-headquartered companies announced VC or grant funding between April and June. Here's a roundup of these second quarter deals — click on each story to read more.


Houston-founded e-commerce unicorn Cart.com raises $60M series C 

Cart.com has secured its unicorn status at a $1.2B valuation with latest round of venture capital funding. Image via Cart.com

A Houston-founded software company — officially a unicorn company, valued at $1 billion or more — has announced the details of its latest fundraise.

Cart.com, which provides a suite of software solutions for commerce and logistics enablement, closed its $60 million series C equity funding round with a $1.2 billion valuation. Investors in the round included B. Riley Venture Capital, Kingfisher Investment Advisors, Snowflake Ventures, Prosperity7 Ventures, Legacy Knight, and more.

According to a news announcement from the company, Cart.com will use the funding for international expansion, continued product development, and to meet increased client demand. Continue reading.

Houston e-commerce company P97 Networks  raises another $40M round to support growth

P97 Networks has again raised $40 million to support its growth. Photo via Getty Images

For the second time in just over a year, a Houston business that provides mobile commerce and digital marketing to the mobility and fuel industries has raised $40 million.

P97 Networks, which has developed a cloud-based mobile commerce platform that helps brands securely do business with customers, announced that it has closed its series C round at $40 million. The equity financing round was led by Portage and included participation from existing investors. The fresh funding will go to support growth strategy.

"In this highly connected world, retail brands are looking for new ways to increase consumer engagement — the power of network effects in the digital world will be a key contributor to revenue growth and margins," says Donald Frieden, CEO of P97 Networks, in a news release. "With consumers of all ages further adopting mobile payment solutions, we are proud to have built the leading connected commerce and digital marketing platform for the convenience retail, energy marketing, and transportation industry." Continue reading.

Podcast: Houston home tech startup SmartAC.com raises $22M to grow sales

Josh Teekell, founder and CEO of SmartAC.com, joins the Houston Innovators Podcast to discuss the latest from his company, which just closed its series B. Photo courtesy

A Houston startup that combines unique sensor technology with software analysis has raised its next round of funding to — according to Founder and CEO Josh Teekell — turbocharge its sales.

SmartAC.com launched in 2020, emerging from stealth with $10 million raised in a series A. Over the past almost three years, the company has firmed up its hardware, developed its software, and pivoted slightly from selling directly to consumers to adopting a B2B approach.

Now, Teekell says he's focused on turbocharging sales to these contractors, and he's going to do that with the funding raised in the series B round that closed this month. He says the company will also grow its team that goes out to deploy the technology and train the contractors on the platform.

"This funding really buys us a couple years of runway through the end of next year and allows us to focus on getting to cash flow breakeven, which is right around our wheelhouse of our abilities here in the next 12 months," Teekell says. "In general, we've accomplished everything we'd be able to accomplish on the hardware side, and now it's just about deployment."

The $22 million SmartAC.com has raised came from local investors. Teekell, who hasn't announced the full list of the round's investors, explains that while traditionally startups might have more opportunity on the coasts for raising money, it's not hard to sell Houstonians on the benefits of SmartAC.com's optimized air conditioning. Continue reading.

Houston fintech startup Brassica raises $8M seed round led by Mercury

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

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. Continue reading.

Houston immunotherapy company 7 Hills Pharma to use $13.5M CPRIT grant to further develop cancer treatments

7 Hills Pharma, an innovative immunotherapy company, was awarded a $13.5 million grant from the Cancer Prevention and Research Institute of Texas. Photo via Getty Images

Between Bangalore and Chennai in the Indian state of Andhra Pradesh, you’ll find the town of Tirupati. It’s home to seven peaks that host a Hindu temple complex devoted to a form of Vishnu, Venkateshvara. It is also the region from which Upendra Marathi originally hails. It’s where his father, and many other family members, attended medical school.

“My father’s first job was to take care of the pilgrims,” recalls Marathi.

It's only natural that his groundbreaking Houston company would be named 7 Hills Pharma.

“That sort of selflessness and giving back, I wanted to embody it in the name of the company,” Marathi says.

Now, 7 Hills Pharma is announcing that last month, it was awarded a $13.5 million grant from the Cancer Prevention and Research Institute of Texas (CPRIT). That’s on top of more than $13 million in NIH grants, making the company the second largest recipient of SBIR/STTR grants in Texas. Continue reading.

Seattle biotech co. OncoResponse to move to Houston thanks to $13.3M grant from CPRIT

OncoResponse in partnership with MD Anderson Cancer Center received a portion of $73 million the Cancer Prevention and Research Institute of Texas has doled out this spring. Photo via oncoresponse.com

A biotech company has landed a more than $13 million grant from the Cancer Prevention and Research Institute of Texas.

The nearly $13.3 million grant given to OncoResponse — which is relocating from Seattle to Houston, according to CPRIT's news release — will help the company develop fully human monoclonal antibodies for treatment of cancer that otherwise would not respond to immunotherapy. OncoResponse already has a partnership with MD Anderson Cancer Center, which is one of the company’s investors.

“We are thrilled to receive this recognition from CPRIT in supporting the potential of our immunotherapy candidate OR502. We greatly appreciate the additional support from our investors as we continue to make significant progress with our drug development efforts advancing immunotherapies derived from clues of Elite Responders,” says Clifford Stocks, CEO of OncoResponse, in a news release. Continue reading.

Houston biotech startup CellChorus secures $2.3M SBIR grant

CellChorus, a biotech startup operating out of the University of Houston Technology Bridge, has secured fresh funding. Photo via Getty Images

They say it’s all in the timing. For CellChorus, it’s all in the TIMING. That’s Time-lapse Imaging Microscopy In Nanowell Grids. TIMING is a visual AI program that evaluates cell activation, killing and movement, which allows scientists to better understand how cells function.

The technology is important to the development of novel therapies in the realms of oncology, infectious diseases, and countless other disorders and diseases. By allowing scientists to observe those maladies at their roots, it will enable them to create, and ultimately deliver new medications and other therapies faster, at lower cost, and with a higher success rate.

CellChorus is a spinoff of the Single Cell Lab at the University of Houston. Part of UH’s Technology Bridge, CEO Daniel Meyer connected with co-founder and leader of Single Cell Lab, Navin Varadarajan, through co-founder Laurence Cooper.

“The company had been established, but there were limited operations,” recalls Meyer during a phone call with InnovationMap.

That was the fall of 2020. Now, the team has just announced a $2.3 million SBIR (Small Business Innovation Research) Fast-Track grant from the National Institute of General Medical Sciences. Continue reading.

Health tech startup Rosarium Health raises $1.7M, plans Houston HQ

Rosarium Health, a member of the Texas Medical Center's 2023 Accelerator for HealthTech cohort, has raised pre-seed funding. Photo courtesy of TMC

A health tech startup that just collected $1.7 million in pre-seed funding aims to eventually plant its headquarters in Houston.

The startup, Rosarium Health, currently has no headquarters; its 10 employees work remotely from various locations. However, co-founder and CEO Cameron Carter — who lives in the Denver area — says the company is eyeing a future headquarters in Houston.

“We believe Houston is the best city to launch a health care startup, given the Texas Medical Center, diverse talent across health and technology, affordable living, and a city with supportive and progressive communities,” Carter tells InnovationMap. “We feel Houston offers meaningful attributes that can enable a high-growth startup to succeed and for its employees to feel safe.” Continue reading.

Houston-based workforce solutions platform Innovapptive closes series B round

A Houston SaaS company has announced a fresh round of funding. Photo via Innovapptive.com

A Houston software-as-a-service company has closed an undisclosed amount of funding in a series B round.

Innovapptive Inc., which has its global headquarters in Greenway Plaza, has announced it's closed a series B investment round led by Austin-based Vista Equity Partners with support from existing investor Tiger Global Management. The fresh funding will be deployed to "accelerate product innovation and reach new regional markets," according to the company.

“We look forward to this next phase of growth as we continue to define the emerging connected worker software category,” says Sundeep Ravande, founder and CEO of Innovapptive, in the news release. “Vista has significant experience scaling enterprise software businesses and emerging technologies." Continue reading.

Venus Aerospace, a Houston startup with hypersonic engine tech, adds new investor

This Houston company is one step closer to enabling high-speed global travel. Photo courtesy of Venus Aerospace

A Houston-based company that's developing an engine that'll enable one-hour global transportation has announced its latest investor.

Venus Aerospace released the news that Silicon Valley venture capital firm, Airbus Ventures, has joined its team of investors. The supersonic combustion engine technology — more akin to a rocket's engine than an airplane's — is revolutionary because allows for travel at a higher elevation. Jet engines rely on air outside of the aircraft to combust, and rocket engines work with a system that supplies air internally.

“Venus has developed the world’s first liquid-propellant rotating detonation rocket engine (RDRE) with a double-digit percentage increase in efficiency over standard regular engines, making the hypersonic economy possible,” says Sassie Duggleby, CEO and co-founder of Venus, in a news release. “We’re delighted to bring Airbus Ventures into the Venus family and look forward to growing our collaboration as we harness the future of hypersonic flight.” Continue reading.

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This week's roundup of Houston innovators includes Jason Ethier of Greentown Labs, Megan Eddings of Accel Lifestyle, and Omair Tariq of Cart.com. 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 clean energy to materials science — recently making headlines in Houston innovation.

Jason Ethier, senior director of membership at Greentown Labs

Jason Ethier witnessed Greentown Labs, a climatetech incubator based in Somerville, Massachusetts, outside of Boston, from its early days.

"Greentown is one of those things where a business seems obvious in retrospect," says Ethier, a serial energy entrepreneur, on this week's episode of the Houston Innovators Podcast, explaining how the incubator launched as just a way to enable coworking between startups. As it grew and eventually expanded to Houston, Ethier had a front-row seat.

Ethier, whose previous startup brought him to Houston frequently, recognized the same scrappy founder mentality and need for incubation support in the Bayou City and was a key player in expanding Greentown to Houston in 2021.

"Every city is proud of who they are, but I think Houston especially is a city that likes to solve problems and build things locally," Ethier says. "When presented the opportunity to help build and ecosystem here, members of the ecosystem raised their hands and said, 'how can I help.'" Read more.

Megan Eddings, founder of Accel Lifestyle

Houston-based Accel Lifestyle's innovative line of athleisure has made it into Talbots. Photo courtesy of Accel

For a year, Megan Eddings, founder of Accel Lifestyle, has been working on the logistics of getting her clothing — made from eco-friendly, sustainable, antibacterial fabrics — into Talbots, and she's finally sealed the deal.

Shoppers can now find Accel Lifestyle apparel on Talbot's website. This partnership marks the first-ever collaboration for the athleisure brand of Talbots, T by Talbots. By teaming up with Accel Lifestyle, Talbots expands its product offerings and also provides its loyal, forward-thinking, and ethically minded customers with a new clothing option that perfectly fits with their values.

"We are beyond elated about the Accel x Talbots launch," Eddings tells CultureMap." Amanda Cotler, Accel's Director of Operations, and I have been working on this opportunity for a year, and it feels incredible for the collaboration to be live. Our passions are textiles with technology and an ethical made-in-the-USA supply chain. To have a multi-billion dollar company like Talbots care about the same things brings us so much joy." Read more.

Omair Tariq, CEO and co-founder of Cart.com

Omair Tariq's Cart.com raised a big round this week. Photo via Cart.com

Houston-founded Cart.com, which provides a suite of software solutions for commerce and logistics enablement, can now check the box saying "unicorn" with its $1.2 billion valuation that came with its $60 million series C equity funding round.

According to a news announcement from the company, Cart.com will use the funding for international expansion, continued product development, and to meet increased client demand.

“We are proud to partner with this prestigious group of investors to accelerate our growth and continue to deliver best-in-class solutions to our customers,” says Omair Tariq, CEO and co-founder of Cart.com, in a statement. “As a leading commerce software and services provider, we are focused on enabling our customers to compete and win across every channel through digital tools and digitally driven logistics capabilities. We will continue to invest in our industry-leading commerce data capabilities, which are built to address the specific inventory, channel and supply chain challenges facing enterprises.” Read more.

Cart.com has secured its unicorn status at a $1.2B valuation with latest round of venture capital funding. Image via Cart.com

Houston-founded e-commerce unicorn raises $60M series C to support growth, international expansion

fresh funding

A Houston-founded software company —officially a unicorn company, valued at $1 billion or more — has announced the details of its latest fundraise.

Cart.com, which provides a suite of software solutions for commerce and logistics enablement, closed its $60 million series C equity funding round with a $1.2 billion valuation. Investors in the round included B. Riley Venture Capital, Kingfisher Investment Advisors, Snowflake Ventures, Prosperity7 Ventures, Legacy Knight, and more.

According to a news announcement from the company, Cart.com will use the funding for international expansion, continued product development, and to meet increased client demand.

“We are proud to partner with this prestigious group of investors to accelerate our growth and continue to deliver best-in-class solutions to our customers,” says Omair Tariq, CEO and co-founder of Cart.com, in a statement. “As a leading commerce software and services provider, we are focused on enabling our customers to compete and win across every channel through digital tools and digitally driven logistics capabilities. We will continue to invest in our industry-leading commerce data capabilities, which are built to address the specific inventory, channel and supply chain challenges facing enterprises.”

The company was founded in Houston in November 2020 and relocated its headquarters to Austin in 2021. Per LinkedIn, 10 percent of its workforce, including several executives and co-founders like Tariq, is based in Houston.

Last year, Cart.com reportedly grew revenue by more than 500 percent and has almost 6,000 brands using its platform. Its users have access to tools across inventory, supply chain, marketing, data, procurement, and more.

“Cart.com is driving the evolution of commerce and unlocking business value through unified data across the entire value chain,” says Harsha Kapre of Snowflake Ventures. “With Cart.com’s data processing and data storage in Snowflake’s Data Cloud, they can provide customers with new options to keep control of their own data and take full advantage of Snowflake’s data analytics and data-sharing capabilities. We look forward to continuing our shared commitment to innovation, growth and technology that delivers a competitive advantage in the market.”

Earlier this month, Tariq was named a regional winner in the Entrepreneur Of The Year program, run by professional services firm EY. He was one of 11 Houston-based executives named in the Gulf South region and now will move on to national Entrepreneur Of The Year program. National winners will be named in November.

The company previously announced $240 million in equity and debt funding from Legacy Knight Capital Partners, the equity investment arm of the Legacy Knight Multifamily Office, last year. In 2021, Cart.com closed a series B round at just under $100 million.

The 11 executives now will move on to national Entrepreneur Of The Year program. National winners will be named in November. Photos courtesy

Houston innovators recognized at annual regional entrepreneur competition

Meet the winners

Eleven Houston-based executives have been crowned regional winners in the Entrepreneur Of The Year program, run by professional services firm EY.

The 11 executives now will move on to national Entrepreneur Of The Year program. National winners will be named in November.

“Every year, we are completely blown away by the accomplishments of our Entrepreneur Of The Year Regional Award winners, and 2023 is no different,” AJ Jordan, director of the Entrepreneur Of The Year program for EY Americas, says in a news release. “They are change-makers and champions of business and community, and we are so proud to be honoring them. We can’t wait to see how these leaders will continue to improve lives and disrupt industries.”

Here are the 11 local winners from the program’s Gulf South region.

Steve Altemus, president and CEO of Intuitive Machines

Intuitive Machines, founded in 2013, is a publicly traded space exploration company. The company’s upcoming mission will send the first U.S. spacecraft to the moon since 1972 as well as the first-ever commercial lunar lander. Its Nova-C spacecraft will carry commercial and NASA payloads.

Earlier this year, a joint venture led by Intuitive Machines nabbed a contract valued at up to $719 million for work on NASA’s Joint Polar Satellite System. The company, which went public in February 2023, forecasts revenue of $174 million to $268 million this year.

“Steve’s visionary mindset and ability to assemble and inspire a talented team have been instrumental in our collective success,” the company says in a statement about the Entrepreneur Of The Year award. “He consistently fosters a culture of excellence, empowering our diverse group of engineers, scientists, and visionaries to pioneer groundbreaking solutions and deliver outstanding results.”

Gaurab Chakrabarti, co-founder and CEO of Solugen, and Sean Hunt, co-founder and CTO

Solugen, founded in 2016, makes and distributes specialty chemicals derived from feedstock. The startup is reportedly valued at more than $2 billion. To date, Solugen has raised $642.2 million, according to Crunchbase.

In naming Solugen one of the most innovative companies of 2022, Fast Company noted that the carbon-negative process embraced by Solugen and the startup’s “ability to sell flexible amounts of chemicals to companies looking to lower their own footprint have helped the company make inroads in a traditionally slow-moving industry.”

Daryl Dudum and Matthew Hadda, founders and co-CEOs of Specialty1 Partners

Specialty1 Partners, which launched in 2019, supplies business services to dental surgery practices. These services include HR, recruiting, payroll, accounting, operations, marketing, business development, compliance, IT, and legal.

In 2022, Specialty1 Partners appeared at No. 72 on the Inc. 5000 list with two-year revenue growth of 2,921 percent.

“Supporting our partners and helping them grow while continuing to build partnerships with industry-leading, innovative surgical specialists is what we focus on every day,” Dudum says in a 2022 news release. “It’s not just about growing our network — we are committed to helping our partner practices grow and succeed on their terms.”

Ludmila Golovine, president and CEO of MasterWord Services

MasterWord Services offers translation and interpretation in more than 400 languages for customers such as energy, health care, and tech companies. The woman-owned business was founded in 1993.

“I’m grateful to our exceptional team and to each of our translators and interpreters who every day live our mission of connecting people across language and culture,” Golovine says in a news release about the Entrepreneur Of The Year honor.

Roger Jenkins, president and CEO of Murphy Oil

Murphy Oil is involved in oil and natural gas exploration and production primarily onshore in the U.S. and Canada, and offshore along the Gulf of Mexico. The publicly traded Fortune 1000 company, founded in 1944, racked up revenue of nearly $4 billion in 2022.

“Over the years, the company has grown and evolved to become a leading independent energy company, with strategic assets around the world,” Murphy says on its website. “All the while, we have remained true to our mission — to challenge the norm, tap into our strong legacy, and use our foresight and financial discipline to deliver inspired energy solutions.

Mohammad Millwala, founder and CEO of DM Clinical Research

DM Clinical Research, founded in 2006, runs 13 sites for clinical trials. Its areas of specialty include vaccines, internal medicine, pediatrics, gastrointestinal, psychiatry, and women’s health.

“DM Clinical Research is in a period of rapid growth with multiple new study sites added over the last two years in addition to the quadrupling of our staff to over 500 employees,” Millwala says in a January 2023 news release. “We expect this transformational growth trajectory to continue for the foreseeable future, on the road to becoming the leading independent clinical research network in the nation.”

Mark Walker, co-founder, chairman and CEO of Direct Digital Holdings, and Keith Smith, co-founder and president

Publicly traded Direct Digital Holdings owns three operating companies that offer online platforms for advertising. Three years after its founding in 2018, the company became the ninth Black-owned business to go public in the U.S.

The company posted revenue of $88 million in 2022, up 131 percent from the previous year.

“Direct Digital Holdings’ success is rooted in the hard work and commitment we have long seen in taking advantage of advertising opportunities targeting underserved communities and [that] markets often overlook,” Smith says in a news release about the Entrepreneur Of The Year award.

Omair Tariq, co-founder and CEO of Cart.com

While technically headquartered in Austin, Houston-funded Cart.com's co-founder and CEO, Omair Tariq, also was a Gulf South winner in the Entrepreneur Of The Year program.

The e-commerce company moved its headquarters from Houston to Austin in 2021. However, Tariq remains in Houston. In May 2023, Tariq delivered the commencement address to MBA recipients from Rice University’s Jones Graduate School of Business, where he earned his MBA.

Cart.com, founded in 2020, offers software and services to thousands of online merchants. To date, the pre-IPO company has raised $421 million in funding, according to Crunchbase.

“We want to be the commerce-enablement infrastructure for the largest brands in the world,” Tariq told the Insider news website in 2022.

Jay Steinfeld (left) looks back at his successful Blinds.com exit, and Omair Tariq shares how Cart.com is growing. Photos courtesy

Houston e-commerce innovators analyze the city's tech and innovation evolution

then and now

When Blinds.com was acquired by Home Depot in 2014, it was a big moment for Houston's nascent tech and innovation ecosystem. However, Jay Steinfeld will be the first to tell you he did not expect to go through a major exit when he founded what he describes as a marketing experiment for his interior design store.

"I heard about something called 'the World Wide Web,' and I thought for $1,500, I'll create a website," Steinfeld says. "I wanted to see what it was and if I could attract people to my store. Next year, Amazon started selling books, and in 1996, I thought I'd see if I could sell this stuff."

However initially unintentional, Steinfeld created a profitable business and very intentionally grew his team with the addition of entrepreneurial-minded individuals, which included Omair Tariq. Tariq is now the founder and CEO, Cart.com, an ecommerce company that's raised $380 million in funding and is providing a suite of software services for merchants. The two sat down to discuss their entrepreneurial journeys with Scott Gale of Halliburton Labs at a Houston Tech Rodeo fireside chat.

Both entrepreneurs credit business success on creating an unparalleled employee culture that fostered a positive workplace environment that reduces turnover.

"We were very deliberate at making people knew that they were important and consequential," says Steinfeld, who recently wrote a book about creating a core culture. "We were doing consequential things by helping people become consequential. ... It really comes down to being respectful to people."

Tariq says setting up Cart.com's culture was a task he dedicated a significant amount of time to. Cart.com grew from 0 to 1,000 employees in just 14 months, so maintaining that culture at that rate of scaling was going to be difficult without the right structure in place. Tariq and his team created six core values, and decisions get put through the lens of these values.

"Building a culture — while you have to be intentional and deliberate about it — the reality is it just happens, if you get the framework right," Tariq says.

And it's not just about putting your core values in the employee handbook or on a wall in the office, but actually celebrating employees who are excelling at the execution of the values. Tariq gives the example of Cart.com's slack channel dedicated to this type of shoutouts.

In terms of hiring at such a quick pace, Tariq explains his mentality when it comes to making sure employees are a fit for the company.

"You've got to be coherent in the way you execute," Tariq says, adding that a lack of coherency leads to major mistakes in a nearly $400 million-backed tech company. "We have a very intentional policy — hire fast, fire faster, promote fastest."

Another ingredient in a successful business is developing a brand. Tariq says this is something that's more crucial than ever — especially for Cart.com, which is competing with the likes of Amazon.

"In today's world, the importance of brand is exponentially more than it was in the pre-Amazon world," Tariq says, explaining that a brand can include exceptional customer service or a best-in-class product.

Cart.com's brand and culture were intentional from inception, but the actual business plan pivoted, Tariq shares with the audience. Originally envisioned as a marketplace, Cart.com's first acquisition was a cardboard box company, which in retrospect Tariq says wasn't the best move. But, the business accounted for the majority of Cart.com's revenue, which showed promise to potential investors, he says. The business did evolve to what it is now — merchant enablement technology — but that didn't happen overnight and came with time.

"You rarely know how to get to C, until you get to B," Tariq says. "If you spend all your energy trying to figure out how to get to C, you're never going to get to B. Sometimes you have to make really dumb moves or mistakes and just pivot and iterate and improve."

The latter half of the discussion included a question from Gale about the role the city of Houston played on business success. For Steinfeld, he says the lack of competition allowed him to attract the best team members.

"While all the investors outside of Houston said, 'you can't run a tech company out of Houston — there's no talent,'" Steinfeld says. "Any talent there was came to us. We weren't competing with Facebook or any other companies."

He continues saying he wishes there were more venture funding and activity coming into Houston, but the people in town are so entrepreneurial, that he says it's confusing how the city's innovation ecosystem hasn't taken off more than it already has.

Tariq has a different perspective of hiring out of Houston. While he says he loves Houston and has no plans to relocate himself or his family, being headquartered in Houston was difficult and the city's lack of appeal in terms of recruiting is what led to him moving his HQ to Austin.

"It's an amazing city with the most amount of diversity I've seen than anywhere in the country. Every third person is a minority or an immigrant, and that is valuable. It brings different perspectives and allows you to get people with different ideas to contribute," Tariq says, adding that the cost of living, tax incentives, academic institutions, capital, are all huge appeals.

"Why is there not more innovation happening here?" Tariq asks. "The things we struggled with at Cart.com is people didn't have the right perception of Houston. What I mean that is people never think of Houston (as a really cool place to move to). It sounds really shallow, but there are little things that I think other cities do better than us that create a good perception of a city is what we need."

Regardless of HQ location, Tariq says Cart.com is a remote-first business and is continuing to grow its team with plans to IPO within the next year.

Cart.com, a Houston-founded unicorn ecommerce company, has closed its latest round of funding. Photo via cart.com

Houston-founded unicorn closes $240M round of funding led by Dallas firm

fresh funding

Cart.com, which moved its headquarters from Houston to Austin in December but still maintains a local presence, just landed $240 million in equity and debt funding.

Legacy Knight Capital Partners, the equity investment arm of the Legacy Knight Multifamily Office, led the equity round, with participation from Citi Ventures, Visa, and other Fortune 100 companies. J.P. Morgan and TriplePoint Capital provided the debt financing. Since being founded in 2020, Cart.com has secured $380 million in funding.

“What [CEO Omair Tariq] and the team at Cart.com have accomplished in the last 14 months is nothing short of remarkable. They have proven they have the ability to rapidly execute on their vision of building the first fully end-to-end e-commerce platform at massive scale,” David Sawyer, chief operating officer and managing partner of Legacy Knight, says in a news release.

Legacy Knight has offices in Houston and Dallas. On its website, Legacy Knight Capital Partners says it makes direct investments of $10 million to $50 million in growth-stage companies and real estate projects.

“With this new funding,” Tariq says, “we’re poised to continue our strategy of acquiring top providers from across the e-commerce value chain, while staying hyper-focused on meeting the evolving needs of the brands we serve.”

Cart.com recently acquired Dallas-based FB Flurry, a provider of technology for fulfillment and customer care, and SellerActive, a Tigard, Oregon-based provider of multichannel e-commerce software.

Omair Tariq, CEO of Cart.com Omair Tariq's Cart.com raised a big round last week. Photo via Cart.com

“The Cart.com team is building a platform that can help sellers of all sizes grow faster as the future of commerce becomes increasingly digital,” says Rubail Birwadker, senior vice president of global digital partnerships at Visa.

Cart.com supplies a variety of software and services for more than 2,000 online merchants.

Last year, the startup decided to relocate its headquarters to Austin, citing the city’s rise as an alternative to Silicon Valley and as “the country’s most exciting and fertile space for high-tech innovation.”

Furthermore, Cart.com said the relocation would help the startup by being in the same business ecosystem as Austin-based companies such as Whole Foods, YETI, Kendra Scott, Tito’s Handmade Vodka, Bumble, and Tecovas.

Cart.com’s move coincided with the startup being named Startup of the Year by Capital Factory, an Austin-based startup accelerator that has offices in Houston, Dallas, and San Antonio. Capital Factory is an investor in Cart.com.

Cart.com employs more than 850 people.

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Houston Innovation Awards names prestigious panel of judges for 2023 awards

meet the decision makers

Ten Houstonians are in the hot seat for deciding the best companies and individuals in Houston's innovation ecosystem.

InnovationMap has announced its 2023 Houston Innovation Awards judging panel, which includes startup founders, nonprofit leaders, investors, corporate innovators, and more.

The 10 selected judges will evaluate applications from the nearly 400 nominations that were submitted this year. The judges will be using their expertise to evaluate the nominees' applications, which are due to InnovationMap by midnight on October 4.

Read about this year's judges below, and don't forget to secure your tickets to the November 8 event to see who the panel selects as the winners for the annual celebration of Houston innovation.

Natara Branch, CEO of Houston Exponential

Houston Exponential was founded to amplify and support the city's innovation ecosystem, and Natara Branch has been leading this initiative since appointed as CEO last year. For the second year, HX is partnering with InnovationMap on the Houston Innovation Awards.

Born in Germany and raised all around Texas, Branch — a University of Houston alumna — previously was the first African American woman to hold a vice president position at the NFL. Based in New York, she oversaw operations in various leadership roles at the NFL for over 18 years.

Barbara J. Burger, former Trailblazer Award recipient

Barbara J. Burger, former vice president of innovation at Chevron and president of Chevron Technology Ventures, was the inaugural recipient of the Trailblazer Award at the 2021 Houston Innovation Awards, which was previously called the InnovationMap Awards.

A self-proclaimed “graduate” from Chevron, she is senior adviser to Lazard, a member of the Greentown Labs Board of Directors, adviser to Syzygy Plasmonics, Epicore Biosystems, and Sparkz Inc., and several other energy transition and philanthropic roles. Burger holds a bachelor’s degree in chemistry from the University of Rochester, a doctoral degree in chemistry from the California Institute of Technology, and an academic honor MBA in finance from the University of California, Berkeley.

Devin Dunn, head of the Accelerator for Health Tech at TMC Innovation

As head of the Accelerator for Health Tech at the Texas Medical Center's Innovation Factory, Devin Dunn works hands on with startups — specifically to help them refine their business models and plan to scale — every day.

Prior to joining TMCi, Dunn was an early employee at a London-based digital health startup. She earned her bachelor’s degree in Biological Basis of Behavior and Healthcare Management from the University of Pennsylvania and received her Master’s in Public Health from the University of Texas Health Science Center.

Noah Fons, senior coordinator of regional economic development at the Greater Houston Partnership

Working within regional economic development at the Greater Houston Partnership, Noah Fons has the pulse on companies expanding to Houston. Previously, he worked at Houston Exponential, so he also understands Houston's evolving innovation ecosystem. He studied economics at Rice University.

Aziz Gilani, managing director at Mercury Fund

As managing director at Houston-based venture capital firm Mercury, Aziz Gilani focuses on investments in enterprise SaaS, Cloud, and data science startups. He's worked at the firm for over 15 years.

A Kauffman Fellows Program graduate, he received his bachelor's degree from the University of Texas and his MBA from Northwestern University’s Kellogg School of Management. Gilani also serves in advisory roles for the Mayor of Houston’s Tech and Innovation Council, Seed Accelerator Rankings, and SXSW Interactive and is an adjunct professor of entrepreneurship at Rice’s Jones Graduate School of Business where he teaches a course on venture capital.

Natalie Harms, editor of InnovationMap

For the third year, Natalie Harms will represent InnovationMap on the annual awards judging panel as the founding editor of InnovationMap the host of the Houston Innovators Podcast.

Recently named the editor of EnergyCapitalHTX, a newly launched sister site to InnovationMap focused on Houston's role within the energy transition, she reports on innovation, technology, energy transition — and their impact on the city of Houston. A Houston native, she's worked as a business journalist for almost a decade and has a degree in journalism from the University of Houston and a certificate in publishing from New York University.

Moji Karimi, co-founder and CEO of Cemvita Factory

Moji Karimi and his co-founder and sister, Tara Karimi, were honored at last year's Houston Innovation Awards as the winners of the Green Impact Business award. Cemvita Factory, their fast-growing startup, uses biotech to sustainably create materials to lower its customers carbon footprints.

Prior to launching Cemvita in 2018, Karimi held leadership roles at Weatherford and Biota Technology. He serves as a board member for CleanTX and adviser to Houston-based ComboCurve Inc.

Margarita Kelrikh, associate at Latham & Watkins

As associate in the Emerging Companies group at Latham & Watkins in Houston, Margarita Kelrikh has supported the firm's growing startup companies since her appointment last year. Prior to joining the firm, she held in-house counsel positions at a few companies, including WeWork.

She received her bachelor's degree at the University of Chicago and her law degree at Columbia School of Law.

Brad Rossacci, creative director at Accenture

Brad Rossacci is creative director at Accenture, where he's worked since 2018. He also co-founded and co-hosts the Curiosity Podcast. A Texas A&M University alumnus and self-proclaimed "rebellious optimist," Rossacci is passionate about Houston and innovation.

Maggie Segrich, co-founder of Sesh Coworking

As co-founder and CFO of inclusive coworking company, Sesh Coworking, Maggie Segrich is dedicated to supporting entrepreneurs of all backgrounds. Last year, Sesh Coworking won the Female-Founded Business category for the Houston Innovation Awards.

She serves as board member for Midtown Management District, where Sesh is located, and board chair for nonprofit, Magpies & Peacocks.

Space tech startup opens new $40M HQ at Houston Spaceport

ready for takeoff

Houston aerospace company Intuitive Machines has moved into its new $40 million headquarters at the Houston Spaceport.

Intuitive Machines’ new home supports NASA’s $93 billion Artemis program, which aims to return astronauts to the moon by 2024 and eventually send humans to Mars. Eighteen astronauts are assigned to the program. Houston’s Johnson Space Center is playing a key role in Artemis.

The company’s 105,572-square-foot Lunar Production and Operations Center serves as the hub for its lunar program, including the manufacturing of lunar landers and spacecraft. The facility features manufacturing and production spaces, 3D printing areas, machine shops, R&D labs, cleanrooms, and spacecraft assembly areas, along with offices, meeting rooms, and conference rooms.

“Unique to the facility are mission control rooms to track and manage lunar missions, and a propulsion test facility to assess lunar lander engine capabilities,” Intuitive Machines says in a news release.

The propulsion test facility consists of a 3,800-square-foot reinforced concrete chamber surrounded by a 25-foot-high perimeter wall that encloses an additional 6,500-square-foot yard.

Intuitive Machines says its first mission lunar lander, Nova-C, will soon be shipped from its new facility ahead of the lander’s upcoming launch. The mission to deliver NASA and commercial payloads to the moon’s south pole marks the first U.S. attempt of a soft lunar landing since Apollo 17 in 1972.

The moon “is no longer a distant dream; it’s a destination within our grasp, and this facility is our lunar gateway — a national asset,” says Steve Altemus, co-founder, president, and CEO of Intuitive Machines.

Construction on the site began in June 2021, with the now-completed facility ready to support each of Intuitive Machines’ three NASA-awarded missions.

Intuitive Machines joins Axiom Space and Collins Aerospace as the third anchor tenant at the Houston Spaceport.

“Houston has always been a city that reaches for the stars, and with Intuitive Machines operating at the Houston Spaceport, our city is poised to shine even brighter in the cosmos,” says Houston Mayor Sylvester Turner.

In August, the publicly traded company announced it received a $20 million equity investment from an unidentified institutional investor.

3 Houston innovators to know this week

hou to know

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

Pedro Silva, CEO and co-founder of Milkify

Pedro Silva of Milkify join the Houston Innovators Podcast to discuss the impact of their successful Shark Tank experience. Photo courtesy of Milkify

While Milkify's founders — husband and wife team Pedro Silva and Berkley Luck — secured partners on a popular business pitch and investment show, the entire experience almost didn't happen.

Silva and Luck, who got her PhD in molecular and biomedical s at Baylor College of Medicine, founded the company to provide breast milk freeze drying as a service to Houston-area families. Now, Milkify has customers across the country, but the duo didn't know if going through the process would be worth the investment and publicity, or if it would just be a distraction.

"The competitor in me wanted to be the first breast milk company to go on the show and to tell our story to the world — to show the world what my wife came up with that we thought was so great," Silva says on the Houston Innovators Podcast. "It was probably the scariest 45 minutes of my life."Read more.

Anthony Palmiotto, director of higher education at OpenStax

OpenStax, founded out of Rice University, has continued its growth, adding new partners and textbooks. Photo via openstax.org

In an effort to combat the hefty price tag of assigned texts, OpenStax, a nonprofit education startup out of Rice University, which is on a mission to increase educational access for all, seeks to democratize high-quality education by offering free, peer-reviewed, openly licensed textbooks for students and knowledge seekers across the globe.

This month, OpenStax will add to its 57 open education resources, or OER, titles with a full version of John McMurry's popular pre-med textbook, Organic Chemistry, under an open license to honor his late son, Peter, who passed away in 2019 after losing his battle with cystic fibrosis.

“Before the nursing books, we were doing business books,” Anthony Palmiotto, director of higher education at OpenStax, tells InnovationMap. “Murry’s book builds out our science offerings, so we're thinking about the different areas that students take that can be barriers for them to move up in education and succeed. From there, we’ll continue to think about how a free textbook can help students through that process.” Read more.

Brad Deutser, founder and CEO of Deutser

In his new book, Houstonian Brad Deutser explores how increasingly important a sense of belonging is in the workplace. Photo courtesy

Last week, Houstonian and business consultant Brad Deutser published his book, BELONGING RULES: Five Crucial Actions that Build Unity and Foster Performance. In a guest column for InnovationMap, Deutser writes of the importance of belonging in the workplace with his colleague Isabel Bilotta, managing consultant and head of learning and innovation at Deutser's learning initiative.

"Although there are many definitions out there, we define belonging as where we hold space for something of shared importance," the article reads. "It is where we come together on values, purpose, and identity; a space of acceptance where agreement is not required but a shared framework is understood; where there is an invitation into the space; an intentional choice to take part in; something vital to a sense of connection, security, and acceptance." Read more.

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