Fresh off $7.5M funding, this new-to-Houston tech company plans to grow and expand in life science space

q&A

Alex Reed, co-founder and CEO of Fluence Analytics, joined InnovationMap for a Q&A on the company's move to Houston and its growth plans. Photo courtesy of Fluence Analytics

Founded in 2012 in New Orleans, a tech company that provides software and hardware solutions for the chemicals industry has entered its next phase of growth by moving its headquarters to Houston following a $7.5 million venture capital raise.

Fluence Analytics, which announced its recent raise led by Yokogawa Electric Corp. last month, has officially moved to the Houston area. The company's new HQ is in Stafford. Alex Reed, co-founder and CEO of the company, joined InnovationMap for a Q&A about what led up to the move and the future of the company, which includes expanding into the life science field.

InnovationMap: Tell me about Fluence Analytics — what does the technology do and why did you decide to start the company?

Alex Reed: We have developed a patented technology that can optimize chemical production. We basically are able to measure what's happening in real time in a process. Imagine if you're baking a cake, and you follow this recipe and sometimes you get the cake you want, sometimes it's too dry, and sometimes it's not cooked enough. And so the polymers industry, for simplistic terms, has that type of an issue. You don't really know exactly where you're at your equipment behaves differently. Basically, what we're able to do is give them real-time information on what's happening as they're baking the cake so that every time they can get a perfect cake.

We have a software and hardware solution that we install in these plants to get these measurements so that our customers can optimize production — and they want to do that to improve their yield, reduce waste, increase safety, and improve quality. There are a lot of different reasons that companies are interested in our technology and we have managed to grow globally. We have customers in Asia, Europe, and the U.S.

We spun out of Tulane University. It's an interesting story because my dad is the inventor of the technology — he's a physics professor at Tulane. I grew up working in the lab with him literally since the age of 12, and I was super interested in technology and science and saw that he was working with all these chemical companies. They were always very interested in what he was working on. I got to the point where I realized that I didn't want to be a scientist — I was far more interested in the commercialization and how you go from lab to product. That transition is very difficult. So, I stepped into the role of the entrepreneur. We had the patents and technology for my dad, I had an excellent mentor, and then our other co-founder was a technical founder.

IM: When and why did you start considering an HQ move? 

AR: We raised our first institutional venture funding in April 2017. Up until that point, it was primarily working with customers and grant funding. We worked with actually a group that has an office here called Energy Innovation Capital. They came in and invested in us and supported us, and George Coyle joined our board.

So, we had that tie to Houston, and I was in Houston a lot because there was a concentration of partners and customers — and not just like chemical plant customers, but also technology and R&D centers. As we started to scale, we brought on some other investors — Mitsubishi Chemical, JSR Corp., and most recently Yokogawa Electric Corp., which has its North American headquarters in Sugar Land.

We started to just build momentum towards it. I'd say we first had the conversations pre-COVID and then COVID hit, and we'd kind of just stopped everything for a while, just to make sure we knew where the business was heading. We've made it through COVID fine and did well on coming out of it. Then we felt it was the right time to pick that thread back up. We knew it made sense. The labor pool is amazing here, and there's just so many reasons why we were looking at it. So then we just pulled the trigger.

IM: How did you decide on the Houston area? What drew you to Stafford?

AR: Initially, we had a little landing pad in the East End Maker Hub, so we got in there and they were awesome. We actually had started hiring remote people here in 2019 because we knew the move was going to happen at some point. We had a place for them to go work out of EEMH while we searched for a permanent facility. We connected with the Greater Houston Partnership, and they plugged us in to Houston Exponential, and they have been very good at introducing us to the right people. We just don't know the lay of the land to be honest, so they've been a great resource. We were looking originally on the northside of Houston, and then we saw the Stafford area. There's a huge concentration of similar type companies — automation, some software, some hardware. There were some tax advantages. We settled in the Stafford area and are very happy with the choice we made to end up here.

IM: I know you recently raised a $7.5M venture funding round. What does that funding mean for growth?

AR: Like any capital, the objective is to use it to grow. For us, "grow" has several different areas. One is the product. There's a very long roadmap of both hardware and software improvements that we want to make. So basically we're accelerating a lot of the things on our roadmap to do things like closed-loop control based on our data — imagine running a whole plant autonomously based on measurements that we're making. We're moving more and more toward that autonomous operation world and improving a lot of the actual underlying hardware, making the measurements, building out sales and marketing as we start to serve more and more customers. Product sales and marketing and customer success are the areas that we're scaling.

IM: As you grow your local team, what are you looking for?

AR: Field applications, software, some automation technicians, and more. We do have some life science applications. So, in addition to our core area on the chemical side, we have a product we've sold into biopharma, and so we want to grow some of that. We're actually hiring for a product manager for the life science side of the business. So, that one's a pretty unique opportunity and role.

IM: Considering your life science application, it seems like Houston is a good fit for that vertical as well, right?

AR: We're working with the Houston of today, but also the Houston of tomorrow, which is this life science play. The next phase is kind of following that innovation value chain. So, figuring out what's the R&D and manufacturing of these pharmaceuticals, and how you can attract more of those technology centers and factories to make the stuff here. If you look at the talent pool here, those resources are somewhat fungible with the resources that serve petrochemical and oil and gas.

This cross pollination I think actually could be quite an interesting differentiator for Houston if the city can build that critical mass. So yes, I think there is an opportunity for us to leverage this vision that Houston has for life science. Now, we'll still have to go to the coast to go to our customers, but I think talent pool, and eventually you might even have customers here. It's certainly feasible.

------

This conversation has been edited for brevity and clarity.

Solugen closed its Series C funding round at $357 million to grow its chemical products. Photo via Getty Images

Houston chemicals company raises $357M, claims unicorn status

money moves

Houston-based Solugen, a startup that specializes in combating carbon dioxide emitted during the production of chemicals, has hauled in $357 million in a Series C funding round. That amount eclipses the size of any Houston VC funding round this year or last year.

The Series C round lifts Solugen's pre-money valuation to $1.5 billion, according to the Axios news website. This gives Solugen "unicorn" status as a startup with a valuation of at least $1 billion.

Singapore-based GIC and Edinburgh, Scotland-based Baillie Gifford led the round, with participation from Temasek Holdings, affiliates of BlackRock, Carbon Direct Capital Management, Refactor Capital, and Fifty Years.

Since its founding in 2016, Solugen has raised more than $405 million in venture capital, according to Crunchbase.

"Solugen's vision for cleaner chemicals through synthetic biology has the potential to be a fundamental shift in how chemicals are made, to help tackle the environmental challenges we face globally. The chemical market itself is colossal, and Solugen is just getting started," Kirsty Gibson, investment manager at Baillie Gifford, says in a September 9 news release.

Solugen's patented Bioforge processes produce "green" chemicals from bio-based feedstocks. These chemicals are aimed at reducing or eliminating carbon emissions from chemical producers. The Series C funding will help Solugen expand the Bioforge platform and broaden the reach of Solugen's products.

Carbon dioxide from chemical production ranks among the greatest contributors to industrial greenhouse gas emissions.

CNBC explains that Solugen designs and grows enzymes that can turn sugar into chemicals needed to make an array products used in many industrial settings. The company's bio-based chemical offering already includes water treatments, a chemical that makes concrete stronger, another chemical that makes fertilizers more efficient, and detergents that are strong enough to clean a locker room or mild enough to be used for facial wipes, according to CNBC.

"This fundraising round allows us to continue expanding the footprint of our Bioforge technology to give industries the products they need to reduce emissions in their existing supply chains, without compromising on performance or economics," Sean Hunt, co-founder and chief technology officer of Solugen, says in the news release.

Three days before the funding announcement, Solugen made news of a different sort.

Axios reported September 7 that Solugen plans to open a new R&D facility outside Texas because many of the state's social policies — including its abortion restrictions — are making it hard to recruit employees.

Solugen employs about 115 people, most of whom work from its Houston headquarters, Axios says. The startup plans to more than double its R&D capability over the next two years, representing around 100 jobs, with most of those workers expected to be assigned to a new facility that will be set up in California or Massachusetts.

"We want to make sure we're hiring the top enzymologists and chemical engineers," Solugen CEO Gaurab Chakrabarti tells Axios. "We've come to the conclusion after talking to lots of candidates that they want to join Solugen, but they don't feel comfortable coming to Texas, so for us it's become a no-brainer to have R&D facilities elsewhere."

Solugen, which uses plant-centered biotechnology to produce environmentally friendly chemicals, has raised an additional $30 million and is speculated to soon reach unicorn status. Photo via solugentech.com

Houston startup raises $30M, plans to be 'next iconic chemical company' with plant-based alternatives

climate tech

While Forbes recently anointed Houston-based Solugen Inc. as one of the next billion-dollar "unicorns" in the startup world, Dr. Gaurab Chakrabarti shrugs off the unicorn buzz.

Chakrabarti, a physician and scientist who's co-founder and CEO of the startup, concedes he doesn't know whether Solugen will be worth $1 billion or not. But he does know that the startup aspires to be a key competitor in the emerging "climate tech" sector, whose players strive to combat climate change. Chakrabarti estimates the climate-tech chemical space alone represents a global market opportunity valued at $1 trillion to $2 trillion per year.

Solugen's overarching goal in the climate-tech market: Replace petroleum-based chemicals with plant-based substitutes.

"I'd love it if we were the poster child that drives climate tech to be the next big, sexy trend," Chakrabarti says.

Chakrabarti acknowledges Solugen's investors, executives, and employees hope the startup succeeds financially. But success, he believes, goes beyond making money and plotting an exit strategy. Instead, Chakrabarti emphasizes "a shift in thinking" on climate tech that he says promises to transform the fledgling sector into a "true niche" that'll be "good for everyone."

"Who cares if people are all hyped up for the wrong reasons?" says Chakrabarti, referring to the unicorn speculation.

Solugen sits at the crossroads of biology and chemistry. In short, the startup taps into plant-centered biotechnology to produce environmentally friendly chemicals and "decarbonize" the chemical industry.

"Quite simply, we want to become the next DowDuPont or the next iconic chemical company, but using principles of green chemistry instead of principles from petroleum chemistry," Chakrabarti says.

If Solugen does reach the icon stratosphere, Chakrabarti envisions it doing so on a speedy schedule. In the traditional petrochemical market, it can take 10 to 20 years to put a new product on the market, he says. "I don't have that kind of time. I'm a very impatient person," Chakrabarti says.

Gaurab Chakrabarti Gaurab Chakrabarti, CEO and co-founder of Solugen, isn't paying any mind to his company's predicted unicorn status — rather he's focusing on the difference he can make on reducing carbon emissions. Photo via solugentech.com

Spurred by that restlessness, Chakrabarti seeks to propel Solugen's products from concept to commercialization in the span of two years. He says the startup already has proven the ability to do that with its sugar-derived hydrogen peroxide product.

"We're going to continue to do that, and it would be great if we can continue demonstrating new [products] coming to market once a year," says Chakrabarti, who grew up in Sugar Land.

Solugen seems to have plenty of financial fuel to make that happen. In April, Solugen raised $30 million in venture capital as an add-on to its Series B funding, which initially closed May 2019. That brings its total VC haul to $68 million since it was founded in 2016, according to Forbes. The recent funding lifted the company's valuation to $250 million, putting it $750 million away from unicorn territory.

Chakrabarti doesn't dismiss the notion of an eventual IPO for Solugen but says being acquired isn't "terribly interesting to me."

"If you want to make money, you can always go be a banker," he notes.

Chakrabarti estimates Solugen will generate $30 million to $40 million in revenue this year, up from $12 million in 2019. Profit remains elusive, though, as the company pours its gains into R&D. The company graduated in 2017 from the Y Combinator startup accelerator. Aside from Y Combinator and Unicorn Venture Partners, investors include Founders Fund, Refactor Capital, Fifty Years, and KdT Ventures.

Solugen's current lineup features fewer than a half-dozen products, which are sold to industrial and government customers. Hundreds more products are in the pipeline for use in sectors like agriculture and energy, Chakrabarti says.

"It's one of the blessings and curses of this company — there's always something to work on, always something big to scale up," says Chakrabarti, who earned his M.D. and Ph.D. from the University of Texas Southwestern Medical Center in Dallas.

Working on selling Solugen's current products and developing its new products are 70 employees, located at its headquarters in Houston and its new production facility in Lubbock. By the end of this year, the startup should employ close to 100 people, Chakrabarti says.

Chakrabarti hesitates to identify Solugen's competitors, as he believes a perceived rival very well could end up becoming a partner.

"I think everyone eventually should be a partner of Solugen, not competition," he says. "It's an ideology that's actually the competition, an ideology like, 'We've always used petrochemistry. This is just how it's been done.'"

Ad Placement 300x100
Ad Placement 300x600

CultureMap Emails are Awesome

Property Showcase

European spacecraft developer expands to Houston with U.S. business, new lab

houston hq

European aerospace manufacturer The Exploration Company has established its first U.S. entity and named Space City as its headquarters.

The company announced earlier this month that it has launched TEC Federal to support U.S. government customers and agencies, and to scale The Exploration Company's engineering operations in the country.

Mark Kirasich serves as president of TEC Federal. Kirasich most recently served as the senior director of human spaceflight at Blue Origin after a nearly 40-year career at NASA.

The Exploration Company is developing the reusable Nyx space vehicle. Nyx is designed to take off from any heavy launcher in the world. It will then dock at space stations, retrieve up to 3,000 kilograms of cargo, splash down and return the cargo to Earth. The company aims to make Nyx fully reusable for up to 10 missions, making it a more affordable and sustainable option for aerospace missions.

The Exploration Company completed a successful drop test of the spacecraft in May in the Mojave Desert. The company says Nyx is slated to perform its first flight demonstration in 2028.

In addition to launching the Houston business, The Exploration Company also opened its new Rapid Innovation Lab near Houston's NASA Johnson Space Center on Space Park Drive.

The Exploration Company opened its Rapid Innovation Lab earlier this month. Photo via LinkedIn

The Rapid Innovation Lab features a full-scale mockup of the future Nyx crew capsule as well as ongoing development and testing of the Nyx cargo capsule, according to the company.

The Exploration Company says the new lab will allow its engineers, designers, and operators to prototype and test crew interfaces. It will also support partnerships with NASA personnel and astronauts.

“Houston gives us direct access to the people and expertise that have built and operated human spaceflight systems for decades. We’re excited to invest and expand around that— engineers, operators, and astronauts working together and moving quickly towards building a crew capsule.” Hélène Huby, founder and CEO of The Exploration Company, said in a blog post.

According to The Houston Chronicle, The Exploration Company has about 30 employees in the Houston area.

The company was founded in 2021 by Huby, a French rocket scientist, and has raised more than $350 million in venture capital. It operates out of Germany, France, Luxembourg, Spain and Italy, with offices in the U.S. and the United Arab Emirates. It is also developing a reusable, high-thrust rocket engine known as Storm.

Exciting XSpace expansion plans + more top Houston innovation headlines

Trending Topics

Editor's note: The top Houston innovation headlines for the first half of July include XSpace's expansion and KBR's C-suite hires. Here is a recap of the five most-read InnovationMap stories published July 1-15, 2026:

1. XSpace plans $250M industrial condo expansion with RAFA Racing Club

nullXSpace plans $250M industrial condo expansion with RAFA Racing Club

Houston-based XSpace Group has teamed up with two other Houston companies, RAFA Racing Club and Maximo Capital, to develop five industrial condo projects that pair flex space and high-end car storage space with a members-only clubhouse for motorsports enthusiasts. The five projects will be built in the Dallas-Fort Worth; Miami-Boca Raton; Charlotte-Mooresville, North Carolina; Phoenix-Scottsdale; and Los Angeles markets. Continue reading.

2. KBR names C-suite duo to lead $5.3B government services spinoff

In advance of the spinoff of its Mission Technology Solutions unit, Houston-based KBR has made two C-suite hires for the new business. Michael LaRouche is coming aboard as president and CEO of the spinoff, currently called SpinCo, on Sept. 26. Nicholas Veasey joined as executive vice president and chief financial officer on July 1. Continue reading.

3. Experts: Houston's VC ecosystem has set the foundation — now we need scale

Fervo Energy went public earlier this summer. The Houston geothermal company priced its IPO at $27 per share, raised $1.89 billion, and opened the next morning at a market capitalization north of $10 billion. By most measures, it is the largest venture-backed cleantech IPO in history and an unambiguous win for Houston. It’s also a useful moment to look at where Houston's venture ecosystem stands and where it can go. The highlight: Houston's venture ecosystem has real foundations and, with increased company formation activity, can grow into the scale our city's ambitions deserve. Continue reading.

4. $12M pharmaceutical manufacturing facility to be built in Sugar Land

A nearly $12 million drug manufacturing facility is coming to Sugar Land. City leaders in Sugar Land recently approved a $1.3 million performance-based incentive for DeliverIt Group, a Sugar Land-based provider of specialty pharmacy, infusion therapy and clinical care services, for the development of the 60,000-square-foot facility. Continue reading.

5. Walmart expands drone delivery service to 8 new Houston-area stores

More Walmart delivery drones are now buzzing around Houston-area skies. In January, Walmart launched its drone delivery service in partnership with Wing at five locations in the Houston area. The retail giant just added eight more stores to its Houston-area drone delivery network. Wing says the expansion makes drone delivery available to more than 1 million residents of the Houston area. Continue reading.

UH lands $4M NIH grant to study early signs of autoimmune disease

NIH funding

The University of Houston recently received a $4 million National Institutes of Health grant to support a 10-year longitudinal study to identify the earliest biological markers of autoimmune disease.

Led by Chandra Mohan, the Hugh Roy and Lillie Cranz Cullen Endowed Professor of Biomedical Engineering, the study aims to examine what causes Systemic Autoimmune Rheumatic Diseases (SARDs) and to identify targets for future treatments. The study will be carried out in collaboration with Dr. Karen Costenbader at Harvard Medical School, Boston.

SARDs include conditions like rheumatoid arthritis, systemic lupus erythematosus, Sjögren’s syndrome and systemic sclerosis—all are considered chronic diseases currently without a cure. Autoimmune diseases affect over 30 million people globally, according to UH.

SARDs occur when the body’s immune system attacks healthy, non-threatening tissues and organs. According to UH, in these diseases, the body often attacks nuclear antigens, creating anti-nuclear autoantibodies, which can be early detection signs for SARDs in more than 50 percent of patients, Mohan says.

Researchers will study blood samples and environmental exposure over the 10 years to better understand anti-nuclear autoantibodies.

“Collectively, these studies will help identify the genetic, environmental and cellular factors that are operative at the two steps of SARD development, namely the emergence of anti-nuclear autoantibodies and disease onset,” Mohan said in a news release. “ More importantly, these studies will highlight functional molecular pathways and mechanisms that may be operative at each step."

Mohan predicts that looking at SARDs’ shared characteristics, rather than each disease individually, could help identify more treatment methods.

“Individual SARDs have been examined in silos without an attempt to discern shared underlying features at the molecular level,” he added in the release. “Current understanding of the initial (and likely shared) origins of SARDs is only rudimentary but urgently needed to develop means for prevention and treatment.”

Earlier this year, UH also received an $11 million NIH grant to conduct a first-of-its-kind study of early language development in children ages 18 to 24 months. Read more here.

View All Listings