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.

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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.

Axiosreported 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.'"

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Harris County booms with 3rd biggest population in U.S.

Boomtown

Newly released U.S. Census Bureau data has revealed Harris County became the third most populous county nationwide in 2024, and it had the highest year-over-year growth rate from 2023.

The new population report, published this month, estimated year-over-year population data from 2023 to 2024 across all 3,144 U.S. counties, and 387 metro areas.

Harris County's numeric growth rate outpaced all other U.S. counties from July 1, 2023 to July 1, 2024, the report found. The Census Bureau estimated Harris County's population grew by 105,852 people year-over-year, bringing the total population to 5,009,302 residents. That's around a 2.16 percent growth rate.

Los Angeles County, California (No. 1) and Illinois' Cook County (No. 2) are the only two U.S. counties that have larger populations than Harris County. Los Angeles County now boasts a population of nearly 9.76 million, while Cook County's has increased to more than 5.18 million people.

The top 10 most populous counties in the U.S. are:

  • No. 1 – Los Angles County, California
  • No. 2 – Cook County, Illinois
  • No. 3 – Harris County, Texas
  • No. 4 – Maricopa County, Arizona
  • No. 5 – San Diego County, California
  • No. 6 – Orange County, California
  • No. 7 – Miami-Dade County, Florida
  • No. 8 – Dallas County, Texas
  • No. 9 – Kings County, New York
  • No. 10 – Riverside County, California

Montgomery County also ranked among the top 10 U.S. counties with the highest numeric growth, ranking 9th nationally after gaining 34,268 residents from 2023 to 2024. Montgomery County's population has now grown to 749,613 people.

In the report's national comparison of counties with the largest population growth by percentage, Montgomery County ranked No. 7 with a year-over-year growth rate of 4.8 percent.

Most populated U.S. metro areas

The U.S. Census Bureau additionally found Houston-Pasadena-The Woodlands nearly led the nation as the second-fastest growing metro area in 2024.

From July 2023 to July 2024, the Houston metro added 198,171 residents to bring the total population to 7,796,182.

New York-Newark-Jersey City was the only metro area to outpace Houston's growth during the one-year period. The New York-New Jersey metro added 213,403 new residents, which brought the total population to over 19.94 million last year.

Kristie Wilder, a Census Bureau Population Division demographer, said in the report that the nation's population growth in its major metros was largely impacted by international migration rather than changes in birth rates.

"While births continue to contribute to overall growth, rising net international migration is offsetting the ongoing net domestic outmigration we see in many of these areas," Wilder said.

Dallas-Fort Worth-Arlington was right behind Houston as the third-fastest growing U.S. metro in 2024. The Metroplex gained 177,922 residents last year, and now has a total population of more than 8.34 million.

The top 10 U.S. metros with the highest numeric growth from 2023 to 2024 are:

  • No. 1 – New York-Newark-Jersey City, New York-New Jersey
  • No. 2 – Houston-Pasadena-The Woodlands, Texas
  • No. 3 – Dallas-Fort Worth-Arlington, Texas
  • No. 4 – Miami-Fort Lauderdale-West Palm Beach, Florida
  • No. 5 – Washington-Arlington-Alexandria, D.C.-Virginia-Maryland-West Virginia
  • No. 6 – Phoenix-Mesa-Chandler, Arizona
  • No. 7 – Orlando-Kissimmee-Sanford, Florida
  • No. 8 – Atlanta-Sandy Springs-Roswell, Georgia
  • No. 9 – Chicago-Naperville-Elgin, Illinois-Indiana
  • No. 10 – Seattle-Tacoma-Bellevue, Washington
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This article originally appeared on our sister site, CultureMap.com.

New report reveals how much Texans are warming up to AI

eyes on ai

When new technology emerges, many of us approach it with a certain amount of skepticism. That’s certainly true with artificial intelligence, which is creeping into practically every part of our existence. Pew Research Center surveys show that more than half (52 percent) of Americans are increasingly cautious about the growing presence of AI in their everyday lives.

So, how wary are Texans of AI? A new ranking from ZapCap, whose AI generates captions for videos, gives us a clue. Texas ranks 15th among the states that are most trusting of AI, with a trust score of 85 out of 100.

Translation: Texans appear to be OK with embracing AI.

To develop the ranking, ZapCap collected search volume data for AI-related queries, including terms such as “best AI tools,” “best AI assistants,” “how to use AI” and “ChatGPT.” ZapCap then calculated a trust score based on each state’s search activity and population.

“This research provides an insightful look into AI engagement patterns across the U.S., highlighting the states where AI is most actively explored and potentially trusted,” says ZapCap.

With an off-the-charts score of 116, California tops the list. California “demonstrates extraordinary AI engagement with over 44 million ChatGPT searches and 77,910 Claude.AI queries, marking the highest AI tool adoption rates across all metrics,” says ZapCap.

Here’s the rest of the top five, including their AI trust scores:

  • New York — 108
  • Massachusetts — 106
  • Virginia — 102
  • New Jersey — 99

The state with the least amount of AI trust is Minnesota, which received a ZapCap score of 22.

“What’s fascinating is that innovation is blooming far beyond the usual tech hotspots,” ZapCap’s Jessica Bui said in a release. “While California and New York continue to lead, states like Massachusetts and Virginia are rising as innovation powerhouses. Their rapid adoption of new technology proves that it's not about market size — it’s about fostering a culture where businesses and everyday people feel confident exploring what's next.”

See the full findings here.

5 Houston female founders land on coveted Inc. 500 list

girl power

Five Houston female founders have been recognized by Inc. Magazine for their innovations and for leading their industries forward.

The women were named to Inc.'s Female Founders 500 list, which features female entrepreneurs based in the U.S. The group attracted approximately $9 billion in 2024 revenue and $10.6 billion in funding, according to Inc.

“Female founders know what struggle is, but they’re also experts of improvisation, adaptability, and creativity. The women featured on this year’s list exemplify these qualities," Diana Ransom, Inc. executive editor said in a release. "Through times of uncertainty, their unwavering dedication and steadfast leadership are not only inspiring but vital to driving progress.”

The Houston founders are:

  • Emily Cisek, founder of The Postage, now known as Paige, a comprehensive life planning and succession software platform for families and small businesses. The company won the Female-Owned Business category in the 2023 Houston Innovation Awards.
  • Sassie Duggleby, CEO and co-founder of Houston space tech and engine company Venus Aerospace. The company won the in the Deep Tech Business category in the 2024 Houston Innovation Awards. Duggleby also serves on the Texas Space Commission board of directors.
  • Stephanie Murphy, CEO and executive chairman of Aegis Aerospace, which provides space services, spaceflight product development, and engineering services. Murphy also serves on the Texas Aerospace Research and Space Economy Consortium Executive Committee.
  • Margo Jordan, founder of adolescent mental health startup Enrichly, which uses AI-driven self-esteem development and behavioral insights to boost student performance.
  • Nina Magon, founder of Nina Magon Studio / Nina Magon Consumer Products, a residential and commercial interior design company

"With every family and community we're able to impact through accessible estate planning, we're driven to do even more. Being recognized on Inc.’s Female Founders list is an incredible honor and a testament to the impact we’re making in fintech and beyond," Cisek said in a news release.

Duggleby echoed that sentiment on LinkedIn.

"While I don't know many of the ladies on this list, I do know they're some of the most tenacious role models in entrepreneurship. I'm beyond honored to be included among them," Duggleby added in a post.

Twenty-eight Texas female founders made this list, including Kendra Scott and Allison Ellsworth, co-founder of Poppi, and many others. See the full list of winners here.