In total, Texas saw seven companies reach unicorn status in 2021. Image via Getty Images

Houston welcomed a duo of unicorns in 2021, according to a new report. But these unicorns aren’t those mythical multicolored creatures. Rather, they’re startups valued at $1 billion or more.

As of December 2021, there were more than 900 unicorns around the world, according to market research company CB Insights. Former unicorns include Airbnb, Facebook, and Google.

Joining the unicorn club in 2021 were two startups based in the Houston area:

  • Solugen, currently valued at $1.8 billion, according to the company, which uses corn syrup to produce chemicals.
  • Axiom Space, valued at more than $1 billion as of February. The startup is developing the world’s first space station for commercial purposes.

Houston's other unicorn is fintech company, HighRadius, which reached the $1 billion valuation mark in January of 2020.

The Lone Star State added a few other companies to its unicorn herd. Austin had four companies claim the prestigious status — the most newly minted unicorns in Texas — and now has a total of six unicorns. Dallas added one new unicorn to its economy, making a total of three Dallas area-based unicorns, according to CB Insights.

Here are the other 2021 unicorns in Texas:

  • Austin-based Iodine Software, valued at more than $1 billion as of December. The company’s artificial intelligence offering aims to help healthcare organizations improve their operations.
  • Austin-based ZenBusiness, valued at $1.7 billion as of November. ZenBusiness provides an online platform designed to help entrepreneurs start, run, and grow their small businesses.
  • Cedar Park-based Firefly Aerospace, valued at more than $1 billion as of May. The startup makes rockets and commercial spacecraft.
  • Austin-based The Zebra, valued at more than $1 billion as of April. The Zebra runs an online marketplace that enables consumers to compare insurance quotes.
  • Irving-based Caris Life Sciences is valued at a whopping $7.83 billion as of May. Caris employs artificial intelligence to come up with targeted cancer treatments.

Startups, particularly those in the tech space, increasingly are drawn to Austin. In 2020, CompTIA, a trade group for the tech industry, placed Austin atop its Tech Town USA index. The organization cited Austin as a “favorable alternative” to the San Francisco Bay Area and New York City for startups and other companies.

Joshua Baer, founder and CEO of Austin-based Capital Factory, an accelerator for startups, told Texas Monthly in April that Austin’s status as a business magnet has risen recently.

“Suddenly, we’ve gone from us having to beat our chest and tell everybody else how great Austin and Texas are to everybody showing up here, telling us why it’s so great, and why they moved here,” Baer says.

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This article originally ran on CultureMap.

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12 winners named at CERAWeek clean tech pitch competition in Houston

top teams

Twelve teams from around the country, including several from Houston, took home top honors at this year's Energy Venture Day and Pitch Competition at CERAWeek.

The fast-paced event, held March 25, put on by Rice Alliance, Houston Energy Transition Initiative and TEX-E, invited 36 industry startups and five Texas-based student teams focused on driving efficiency and advancements in the energy transition to present 3.5-minute pitches before investors and industry partners during CERAWeek's Agora program.

The competition is a qualifying event for the Startup World Cup, where teams compete for a $1 million investment prize.

PolyJoule won in the Track C competition and was named the overall winner of the pitch event. The Boston-based company will go on to compete in the Startup World Cup held this fall in San Francisco.

PolyJoule was spun out of MIT and is developing conductive polymer battery technology for energy storage.

Rice University's Resonant Thermal Systems won the second-place prize and $15,000 in the student track, known as TEX-E. The team's STREED solution converts high-salinity water into fresh water while recovering valuable minerals.

Teams from the University of Texas won first and second place in the TEX-E competition, bringing home $25,000 and $10,000, respectively. The student winners were:

Companies that pitched in the three industry tracts competed for non-monetary awards. Here are the companies named "most-promising" by the judges:

Track A | Industrial Efficiency & Decarbonization

Track B | Advanced Manufacturing, Materials, & Other Advanced Technologies

  • First: Licube, based in Houston
  • Second: ZettaJoule, based in Houston and Maryland
  • Third: Oleo

Track C | Innovations for Traditional Energy, Electricity, & the Grid

The teams at this year's Energy Venture Day have collectively raised $707 million in funding, according to Rice. They represent six countries and 12 states. See the full list of companies and investor groups that participated here.

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

Houston startup is off to the races with its innovative running shoes

running start

Despite Houston’s reputation as a sneaker town, there are few actual shoe companies headquartered in the Bayou City. One that is up and running is Veloci Running, an innovative enterprise that combines the founder’s history as a track runner for Rice University with the realities of running in a changing world.

Tyler Strothman started running cross country growing up in Wisconsin and Indiana before moving to Texas to attend Rice in 2020. Naturally, his college life was altered significantly by the COVID-19 pandemic. Unfortunately, Strothman contracted the virus, leading to pneumonia and causing him to consider other plans for his future.

One thing that stood out from Strothman’s running career was how bad his shoes fit.

“Traditional shoes narrowed in, cramped the front of my feet, and it was causing foot pain,” he said in a video interview. “But any other shoes that were shaped to better fit the natural foot shape were more barefoot (style)—they were more minimalist overall. And that was hurting my calf and Achilles. It was pulling on it, kind of like a rubber band.”

Strothman decided to start Veloci and went on to win the annual Liu Idea Lab for Innovation and Entrepreneurship's H. Albert Napier Rice Launch Challenge in 2025. The win secured $50,000 in startup money, which Strothman used to immediately launch his new runner-centered shoe design with himself as the CEO at the age of 24.

Along for the jog was Strothman’s college friend, Austin Escamilla, who serves as chief operating officer. Escamilla believed in Strothman’s vision, but the project immediately ran into snags beyond Veloci’s control, particularly with manufacturing in Asia.

“It was quite a year to start a shoe business, especially dealing with tariffs and global economic trade tensions,” he said in the same video interview. “We've luckily had some really good partners and really solid advisors throughout the journey who've either done it or had some good feedback and advice. It certainly takes a village, but every day is different. So, it's fun to come into work every day and problem solve.”

The flagship Veloci shoe is the Ascent, which comes in both men’s and women’s sizes. It combines the wide toe cage that Strothman wanted with extra support cushion for a softer, easier run. They retail at $180. Strothman has personally been testing them for a year, noticing reduced lower leg pain when he runs.

At the same time, Veloci has attended to some of the more unique running problems in Houston and other hot, Southern states. A combination of heat and humidity makes for a very soggy shoe if not designed with such environments in mind. The Ascent is built to be very open and breathable, allowing hot air to flow and keeping sweat from building up. These various comfort improvements have made the Ascent Strothman’s favorite running shoe.

“I put on more pairs of this Veloci shoe than I have in my other running shoes in the last seven years,” he said

Currently, Veloci is still a very niche brand. Since the company launched last year, they’ve sold roughly 10,000 pairs. Those sales come either directly through their website or from specialty running stores, most of which are located around the Houston area, like Clear Creek Running Company in League City.

Building community around the shoe through these specialty retailers has been a prime marketing strategy. Part of the $50,000 grant went to a custom van that Veloci can take to various 5Ks, runs and events to get people interested in the brand. The personal touch has helped news of Veloci spread through the running world.

“We went to many run clubs throughout the last year,” said Escamillia. “We've been to pretty much every one of the major run clubs at least once or twice. Folks who try on the shoes, love them, become fans and post and repost…. The marketing side's been a lot of fun.”

Intuitive Machines lands $180M NASA contract for lunar delivery mission

to the moon

NASA has awarded Intuitive Machines a $180.4 million Commercial Lunar Payload Services (CLPS) award to deliver science and technology to the moon.

This is the fifth CLPS award the Houston spacetech company has received from NASA, according to a release. It will be the first mission to utilize Intuitive Machines' larger cargo lunar lander, Nova-D.

Known as IM-5, the mission is expected to deliver seven payloads to Mons Malapert, a ridge near the Lunar South Pole, which is a "compelling location for future communications, navigation, and surface infrastructure," according to the release.

“We believe our space infrastructure provides the scalability and flexibility needed to support an increased cadence of new Artemis missions and advance national objectives. This CLPS award accelerates our expansion efforts as we build, connect, and operate the systems powering that infrastructure,” Steve Altemus, CEO of Intuitive Machines, said in the release. “We look forward to working closely with NASA to deliver mission success on IM-5 and to provide sustained operations and persistent connectivity in the cislunar environment and across the solar system.”

The delivery will include the Australian Space Agency’s lunar rover, known as Roo-ver, and another lunar rover from Honeybee Robotics, a part of Jeff Bezos' Blue Origin. Intuitive Machines will also deliver chemical analysis instruments, radiation detectors and other technologies, as well as a capsule named Sanctuary that shows examples of human achievements.

Intuitive Machines previously completed its IM-1 and IM-2 missions, which put the first commercial lunar lander on the moon and achieved the southernmost lunar landing, respectively.

Its IM-3 mission is expected to deliver international payloads to the moon's Reiner Gamma this year. It’s IM-4 mission, funded by a $116.9 million CLPS award, is expected to deliver six science and technology payloads to the Moon’s South Pole in 2027.

The company also announced a $175 million equity investment to fuel growth earlier this month.