Houston-based Allganize, founded by Changsu Lee, is taking its $35 million in investment funding and changing the game of AI on a global scale. Photo via Getty Images

It’s taken people some time, but most of society is finally doing a collective 180-degree flip on its once guarded view of artificial intelligence in favor of being open to the idea that it can help humankind in a myriad of positive ways.

That’s why Houston-based software development company Allganize recently secured $20 million in series B funding to propel its industry-leading AI answer bot, Alli.

The All-in-One LLM Enabler Platform, which intelligently responds to customers through natural chat conversation flows, while also enabling the automation of up to 80 percent of support tickets, allows customers to get serviced faster while improving employee productivity.

With the latest $20 million investment by InterVest and Murex Partners, that brings the total funding into Allganize to $35 million. That investor confidence will ultimately help catapult the company’s AI solutions to the next level and help target its planned Japanese Stock Exchange listing by 2025.

“We will lead the expansion of corporate-specific LLM app markets and accelerate the distribution of enterprise automation AI in USA, Korea, and Japan,” says Changsu Lee, CEO of Allganize. “We are dedicated to empowering companies to develop custom LLM applications, enabling practical tasks execution and work automation.”

From programmer to prototype

Allganize’s plans to go public in 2025 stems from Lee’s early ties to Japan. While Lee is originally from Korea, he got his start in Japan, where he was able to secure his first job as a programmer at a gaming company and years later the first investment for the first company he started, ABLAR.

“I'm originally from Korea and when I got a scholarship from the Japanese government, and I went to the research laboratory of Tokyo Institute of Technology, I was not able to speak Japanese at all,” Lee tells InnovationMap. “But that one year actually changed my life. I could speak Japanese while I was there, and I was able to learn a lot of Japanese cultures, and there in the social system, I became a big fan of Japan, and then after that, so I was really looking for an opportunity to do business with Japan, or in Japan.

“I was originally trying to start a company in Japan, and I started to work as a programmer in a gaming company, and at night time, and also the weekends, I was actually building a product to start a company," he continues. "So back then, that product name was ‘Search for You.’ It was every single person's search history, the trees, then if we can find somebody else who's already advanced, but pretty similar search tree, then I was thinking, we can probably, give better suggestions or the recommendations. This is future knowledge that you could probably expect to learn, and if we can have a million users, then we can leverage, those search histories from Google."

Changsu Lee is the CEO of Allganize. Photo via LinkedIn

From there, Lee built the prototype, while making the bulk of his decisions from Japan. Later, while back in Korea, he expanded his business into Japan and met the biggest VC of Japan at an event in Korea and gave a quick pitch of his company’s service. Ultimately, he got the funding and hired Allganize co-founder Yasuo Sato, who he’s been working with for more than 11 years now.

For Lee, it all comes back to where his first idea and mission was believed in and supported, and that place was Japan. Not surprisingly, the bulk of Lee’s customers are in Japan, and it was there that he began his AI journey, by cutting his teeth in machine learning.

“After changing the company name to 5Rocks, we were providing analytics and marketing automation solutions for mobile game companies,” says Lee. “So even back then, we were actually using machine learning, but it was not deep learning. We were using machine learning to predict every single gamer's remaining lifetime in the game. For example, how many days or how many months is this gamer going to stay in the game and how much money are they going to spend in the game for their game items?

“We were predicting this by using machine learning," he continues. "And after we were acquired by the mobile advertising company, I worked as the SVP of the platform there, and I actually got the opportunity to learn the deep learning.

If it’s possible to dig deeper into deep learning, that’s exactly what Lee did as the senior vice president of Tapjoy. Selling his first company and staying onboard in a much more limited role allowed Lee to have a sort of paid internship or technological rotation program into AI and deep learning, which he believed was going to completely change everything and, as a result, was to be the major foundational key to his next venture, Allganize.

Japanese IPO on the horizon

Fast forward to 2023 and the $35 million in investments, Lee and his team are aiming to expand the company’s existing customer base of over 200 enterprises and an IPO on the Tokyo Stock Exchange in 2025.

Take a quick look around and roll call currently known AI platforms. Google Duet, Microsoft Co-Pilot and, of course, ChatGPT quickly come to mind, right?

Spoiler alert: those are all descendants of Allganize’s Alli All-in-One LLM Enabler Platform, which it continues to enhance. Still, Lee and his team still find themselves having to reassure that AI is not the boogeyman movies like The Terminator or Ex Machina have made it out to be.

“I think the most important thing is in how we can leverage and utilize these AI tools,” says Lee. “And because, at the end of the day, it's still a tool, AI is great. It's really powerful. But it's still the tool for helping humans. For example, for white-collar knowledge workers, productivity is completely different when they are using the AI. AI is also more knowledge-focused, and you can answer all the questions that you have.”

Simply put, AI can add not only add to efficiency and productivity, but it can also answer questions before anyone can think to ask them and fill in the blanks to missing information that one didn’t know was missing or could think was missing.

“As powerful as that sounds, AI still can't replace people because people still have to direct it and guide it to where it needs to go,” says Lee. “And because AI's capability is becoming more and more powerful, it’s important for us to learn how to safely train the AI and how to make the good guidelines that we're using for AI.”

With Allganize focused on large language models, they assist businesses to leverage AI to enhance their employees’ knowledge recall and operational efficiency.

“I'm always saying the LLM model is just an engine of the car,” says Lee. “People are buying cars, people are not buying engines. Of course, the engine is important for the car's performance, but people are actually buying cars, not the engines. So, we are really focusing on what kind of application you really want to do in your organization by using LLM.

"And again, our ultimate focus is all the applications because this AI should be used in the daily life of the enterprise, which is the workflow," he continues. “We call them the LLM app. At the moment, the biggest LLM app is called the cognitive search. So when an employee or the customer is asking a question, then AI is understanding all these internal, the best amount of the documents and knowledge bases and databases and they can give comprehensive correct answers to the users. ... Then AI can actually give better answers and they can also give you another suggestion on what to do next. So, that is the biggest application.”

Additional applications include comparing labor agreements in the labor department or on the human resources side, screening several hundred resumes to find who is the best candidate for an open job requisition. Bonus point: it does all of this without the implicit bias that has been historically problematic for HR teams in their recruiting process.

Allganize is also able to create applications without traditional coding like Java and Python.

“Yeah, that is possible because of the LLM,” says Lee. “Because the LLM is such an amazing AI. So, it can handle most of the logics and data. It has been handled only by the software code. But now, the LLM doesn't cover these things. And so users, like somebody who wants to build any of those complicated workflow automations, they don't really need to write a code and they can just use LLM. And then they can just do visual flowcharts, like the old way. And then that is our app. And then all these things are done just like magic.”

Certainly, there’s been quite a bit of “magic” coming from Allganize and that’s all because of Lee and his innate ability to identify problems that need to be solved before they develop and create applications and solutions to address them ahead of time.

“I think two main things are necessary to get to this point with Allganize,” says Lee. “The first thing is expertise in AI, and the second thing is real domain knowledge.

“And I have been working in enterprise, including telecommunications and gaming a little bit more than 20 years. So, how enterprise is working and how the workflow is being defined and how the company and the teams are collaborating, and I have been with it for 20 years. In my academical background, it's all about AI. And I'm writing a code and seeing the very technical details of all these AI models.”

Lee learned a lot during and after selling his first company that he founded, which put him on the correct path to get the funding needed to realize his dream for Allganize.

“I really want to make this a company which can go long and then big,” says Lee. “And that's why we are working on going public. We are doing business in the U.S., Japan, and South Korea. And at the moment, Japan is our biggest market. So, we are going to go public in Japan in 2025. And from that point, we're going to accelerate our global expansion.”

Allganize recently closed a $20 million series B round of funding, bringing its total amount raised to $35 million. Graphic via allganize.ai

Houston AI company raises $35M, plans for Japanese IPO

fresh funding

A Houston tech startup with an artificial intelligence technology has announced it's raised two rounds of funding as it plans to continue developing its product and IPO in Japan.

Allganize recently closed a $20 million series B round of funding, bringing its total amount raised to $35 million, according to the company. Allganize developed Alli, an all-in-one platform for enabling large language models, that's used by over 200 enterprise and public companies globally, including Sumitomo Mitsui Banking Corporation, Nomura Securities, Hitachi, Fujitsu, and KB Securities.

The funding will go toward expanding corporate-specific LLM app markets and expanding enterprise automation AI in the United States, Korea, and Japan. The company has a goal of listing on the Japanese Stock Exchange by 2025.

"This investment accelerates our journey towards global expansion and achieving a milestone of listing on the Japanese stock exchange by 2025. Our focus is on leveraging LLMs to revolutionize work productivity. We are dedicated to empowering companies to develop custom LLM applications, enabling practical tasks execution and work automation,” Changsu Lee, CEO of Allganize, says in a news release.

In the latest round, InterVest and Murex Partners joined existing investors ATINUM Investment and Stonebridge Ventures.

"Allganize's generative AI-based services have garnered acclaim for their technological excellence and practicality among global financial firms. We foresee substantial revenue growth following this investment," Kang Dong-min, vice president of Murex, says in the release.

Allganize was founded in 2017 in California and has offices in Houston, Seoul, and Tokyo. The company's customers range from the insurance and financial services to oil and gas, construction, and more.

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Texas Space Commission doles out $5.8 million to Houston companies

On A Mission

Two Houston-area companies have landed more than $5.8 million in funding from the Texas Space Commission.

The commission granted up to $5.5 million to Houston-based Axiom Space and up to $347,196 to Conroe-based FluxWorks.

The two-year-old commission previously awarded $95.3 million to 14 projects. A little over $34 million remains in the commission-managed Space Exploration and Aeronautics Research Fund.

Axiom Space, a commercial spaceflight company, said the new funding will go toward the development of its orbital data center capabilities. By the end of this year, Axiom plans to launch two free-flying nodes in low-Earth orbit to support its orbital data center operations. More nodes are set to go online in the coming years.

“Axiom Space is actively evaluating how our [orbital data center] architecture can enhance critical U.S. capabilities, including the proposed Golden Dome missile defense architecture,” Jason Aspiotis, global director of in-space data and security at Axiom, said in a news release. “In this context, real-time, around-the-clock availability, secure orbital processing, and AI-driven autonomy are vital for ensuring mission success.”

Founded in 2021, FluxWorks provides magnetic gear technology that was developed at Texas A&M University.

In 2024, FluxWorks was one of two startups to receive the Technology in Space Prize, funded by Boeing and the Center for the Advancement of Science in Space (CASIS), which manages the International Space Station National Laboratory.

FluxWorks is testing the performance of magnetic gear in microgravity environments, such as the International Space Station.

“Gearboxes aim to reduce the mass of motors required in a variety of applications; however, the lubricant needed to make them work properly is not designed for use in extreme environments like space,” according to a 2024 news release about the Technology in Space Prize. “Magnetic gears do not require lubricant, making them an appealing alternative.”

The Texas Space Commission granted $25 million to Houston aerospace companies Starlab Space and Intuitive Machines earlier this year. Read more here.

3 Houston startups named most innovative in Texas by LexisNexis

report card

Three Houston companies claimed spots on LexisNexis's 10 Most Innovative Startups in Texas report, with two working in the geothermal energy space.

Sage Geosystems claimed the No. 3 spot on the list, and Fervo Energy followed closely behind at No. 5. Fintech unicorn HighRadius rounded out the list of Houston companies at No. 8.

LexisNexis Intellectual Property Solutions compiled the report. It was based on each company's Patent Asset Index, a proprietary metric from LexisNexis that identifies the strength and value of each company’s patent assets based on factors such as patent quality, geographic scope and size of the portfolio.

Houston tied with Austin, each with three companies represented on the list. Caris Life Sciences, a biotechnology company based in Dallas, claimed the top spot with a Patent Asset Index more than 5 times that of its next competitor, Apptronik, an Austin-based AI-powered humanoid robotics company.

“Texas has always been fertile ground for bold entrepreneurs, and these innovative startups carry that tradition forward with strong businesses based on outstanding patent assets,” Marco Richter, senior director of IP analytics and strategy for LexisNexis Intellectual Property Solutions, said in a release. “These companies have proven their innovation by creating the most valuable patent portfolios in a state that’s known for game-changing inventions and cutting-edge technologies.We are pleased to recognize Texas’ most innovative startups for turning their ideas into patented innovations and look forward to watching them scale, disrupt, and thrive on the foundation they’ve laid today.”

This year's list reflects a range in location and industry. Here's the full list of LexisNexis' 10 Most Innovative Startups in Texas, ranked by patent portfolios.

  1. Caris (Dallas)
  2. Apptronik (Austin)
  3. Sage Geosystems (Houston)
  4. HiddenLayer (Austin)
  5. Fervo Energy (Houston)
  6. Plus One Robotics (San Antonio)
  7. Diligent Robotics (Austin)
  8. HighRadius (Houston)
  9. LTK (Dallas)
  10. Eagle Eye Networks (Austin)

Sage Geosystems has partnered on major geothermal projects with the United States Department of Defense's Defense Innovation Unit, the U.S. Air Force and Meta Platforms. Sage's 3-megawatt commercial EarthStore geothermal energy storage facility in Christine, Texas, was expected to be completed by the end of last year.

Fervo Energy fully contracted its flagship 500 MW geothermal development, Cape Station, this spring. Cape Station is currently one of the world’s largest enhanced geothermal systems (EGS) developments, and the station will begin to deliver electricity to the grid in 2026. The company was recently named North American Company of the Year by research and consulting firm Cleantech Group and came in at No. 6 on Time magazine and Statista’s list of America’s Top GreenTech Companies of 2025. It's now considered a unicorn, meaning its valuation as a private company has surpassed $1 billion.

Meanwhile, HighRadius announced earlier this year that it plans to release a fully autonomous finance platform for the "office of the CFO" by 2027. The company reached unicorn status in 2020.

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This article originally appeared on Energy Capital HTX.

UH student earns prestigious award for cancer vaccine research

up-and-comer

Cole Woody, a biology major in the College of Natural Sciences and Mathematics at the University of Houston, has been awarded a Barry Goldwater Scholarship, becoming the first sophomore in UH history to earn the prestigious prize for research in natural sciences, mathematics and engineering.

Woody was recognized for his research on developing potential cancer vaccines through chimeric RNAs. The work specifically investigates how a vaccine can more aggressively target cancers.

Woody developed the MHCole Pipeline, a bioinformatic tool that predicts peptide-HLA binding affinities with nearly 100 percent improvement in data processing efficiency. The MHCole Pipeline aims to find cancer-specific targets and develop personalized vaccines. Woody is also a junior research associate at the UH Sequencing Core and works in Dr. Steven Hsesheng Lin’s lab at MD Anderson Cancer Center.

“Cole’s work ethic and dedication are unmatched,” Preethi Gunaratne, director of the UH Sequencing Core and professor of Biology & Biochemistry at NSM, said in a news release. “He consistently worked 60 to 70 hours a week, committing himself to learning new techniques and coding the MHCole pipeline.”

Woody plans to earn his MD-PhD and has been accepted into the Harvard/MIT MD-PhD Early Access to Research Training (HEART) program. According to UH, recipients of the Goldwater Scholarship often go on to win various nationally prestigious awards.

"Cole’s ability to independently design and implement such a transformative tool at such an early stage in his career demonstrates his exceptional technical acumen and creative problem-solving skills, which should go a long way towards a promising career in immuno-oncology,” Gunaratne added in the release.